Retail groups respond to challenging climate - Alliance Flooring 10th anniversary: Celebrating the past, looking ahead
Article Number : 1836
Article Detail
  
Date 3/19/2007 9:33:37 AM
Written By LGM & Associates Technical Flooring Services
View this article at: //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=1836
Abstract By Matthew Spieler
ATLANTA—In 1997, two carpet mill executives had a dream of how a flooring franchise should operate. Ten years later, over 700 people came out to celebrate the vision of Ron Dunn and Jon Logue...
Article By Matthew Spieler
ATLANTA—In 1997, two carpet mill executives had a dream of how a flooring franchise should operate. Ten years later, over 700 people came out to celebrate the vision of Ron Dunn and Jon Logue.
Alliance Flooring was originally created as the CarpetsPlus of America franchise network of specialty flooring retailers.

Today, Alliance is the umbrella company for some of the industry’s best known buying groups, including CarpetsPlus Color Tile, Carpetland Color Tile, Color Tile Outlet and Floorco.

“Getting both Carpetland and Color Tile were unexpected,” Dunn said. “If someone had told me we’d own these other brands, we would have looked at them funny. When we started, the whole Alliance concept was not even in our thinking.”

“We started out wanting to be a different buying group,” Logue added. “The goal was to offer something to dealers that the others weren’t.”

Its corporate theme—We are all family—is one of those things everyone associated with the company believes separates Alliance from others. “It’s one thing to have a theme,” said David Gaspard, owner of Floorco of New Orleans in Mandeville, La. “It’s another thing to live it, and this group and management have been true to form from the beginning.”

He relayed the outpouring of help and support he received after his life was turned upside down from Katrina.

For the 15 charter members, not to mention the many who quickly climbed on board, it has been a roller coaster of a ride these past 10 years. The original CarpetsPlus franchise was sold to The Maxim Group, which shortly thereafter filed for bankruptcy.

At the urging of members, Dunn and Logue bought the company back along with the Carpetland operation. Then came Color Tile and the startup of Floorco, a trade-only showroom concept for members to broaden their businesses.

While they’ve seen their group transform itself numerous times, dealers and suppliers say the bumps have been worth the trip. Mark Dougherty of Hoosier Floor Covering in Indiana said, “We’re all spoiled with the consistently great leadership— from the top all the way down through the ranks.”

Just using the group’s convention and member summits as an example, he added, “For anyone who has never attended one, they are missing out. This group is always trying to be on the cutting edge of where the industry ought to be, and the vision and foresight has always been on target.”

While the convention paid homage to the group’s past with videos, testimonials and the sharing of fond memories, it was also a celebration of what’s new and where the group is headed.

“So where do we go from here?” Dunn asked. “Some things will stay the same: Networking and the sharing of best practices has always been a priority and will continue to be. We were built on offering a menu of services, not mandating programs to members. We still believe that you know what’s best for your store, but it’s your turn to take full advantage of what we and our suppliers offer. Listening is a skill that is being lost in society, even though it is a key to success. We have always believed in listening to our members because there’s a lot to be learned. We will continue to grow, but at a manageable rate. And, the Golden Rule is something we have strived to live by from day one, and that will continue. It is a simple, profound statement, but it’s right, and it’s another key to success that can take you to the right place.”

While Alliance’s core philosophy remains, he said there are changes taking place. “We’ve got to be more technological. We’ve come a long way, such as in our back room initiatives and new Web site, but we must keep moving forward. There needs to be stronger efforts between members and suppliers, meaning we are going to have to move more together as a group. Our strength is that we don’t tell you what to do, but that is also our weakness. But we want to continue not mandating things. We need to have a three-prong approach in every market in order to appeal to full service customers, designers and DIYers. That’s where each concept— CarpetsPlus, Carpetland, Color Tile and Floorco—comes into play.”

Lastly, both Dunn and Logue noted they must continue to offer products and programs that allow members to not only differentiate themselves from their competitors, but help make them be leaders in their individual markets.

Going green

While numerous initiatives were put forth, probably the biggest one unveiled at convention was the group’s foray into the environmental movement with the launch of EcoChoice Flooring. The centerpiece of this is the private-labeled EcoChoice display and carpet collection. Featuring all Anso branded products from Shaw’s Green Edge program (FCNews, Dec. 11/18), the program is a collaborative effort between the mill and the group.

“They wanted to do this,” said Randy Merritt, president of Shaw Industries. “I’d like to say we provided the fire, but they really jumped on this and we just gave them some of the tools to make it a reality.”

Dunn and Logue were quick to give credit for the program to their sons, Ryan and Keith, respectively, who, among their many responsibilities, share the COO functions at Alliance. “It was the younger guys who came to us saying we need to get into it. And they really hit the nail on the head as the reaction has been the strongest among the group since we bought Color Tile.”

Jim Brown of Carpet-Draperies Plus Color Tile in Seaside, Calif., called the program “wonderful. He noted while California as a whole is very much into the environmental movement, his region in the Monterey Peninsula is particularly into it. “We have people coming in asking if we carry green products, so this will be a big contribution.”

Dougherty, who, along with his wife, Mary Ann, are members of the group’s advisory board and played a major role in developing the program, said even in his small town, “we are right up there with the larger cities when it comes to being green. It’s easy to advertise and sell eco-friendly products such as cork, bamboo, linoleum, etc., and this collection just rounds out one of the last pieces of the puzzle.”

Others, such as Michael Moore of CarpetsPlus of America- Moore Industries in Medford, Ore., saw a great new avenue to market his business.

Noting how the company is already certified in Ardex’ environmentally friendly products, “We can advertise to builders that we are the place to come to and meet all their needs for ecofriendly flooring solutions.”

The EcoChoice program goes beyond just offering consumers Earth-friendly products, displays and signage. The group is backing it up with a strong commitment.

With every purchase of an EcoChoice branded product, a donation will be made to the National Arbor Day Foundation to be used for its reforestation and rain forest preservation programs.

“There was no story to tell before,” Merritt noted. “Now they have something. Alliance has really given its members an outstanding story. And once you start letting consumers know you offer these types of products they will come in for them.”

With 10 years of growth and forward-thinking programs under their belt, the membership of Alliance has more than just one great story to tell. To do that, concluded Mike Montgomery, this year’s CarpetsPlus Dealer of the Year winner, members are consistently given “new products and initiatives that keep us ahead of the curve.”