Article Number : 2770 |
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| Date | 12/17/2007 9:15:00 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=2770 |
| Abstract | (Editor’s note: This is the third in a n eight-part series tracking the progress of a well-established, successful retailer that joined Flooring America in April. Each installment covers a different aspect of how the buying group helped the dealer improve its business.)... |
| Article | (Editor’s note: This is the third in a n eight-part series tracking the progress of a well-established, successful retailer that joined Flooring America in April. Each installment covers a different aspect of how the buying group helped the dealer improve its business.) Dothen Ala.—While most retailers are living through tough times, Stokes Floor Covering is having the time of its life. The 57-year-old specialty business is in the midst of its best year ever, and owners Debbie and Bob Rainey attribute it to one thing: joining Flooring America. Talk to Debbie, and she will pinpoint the group’s improved merchandising package as a primary reason. “Before we joined Flooring America our showroom was not arranged in collections, styles or designs. We were unorganized and not consumer friendly, but now we are. A customer doesn’t say, ‘I’m looking at 3,000 pieces of carpet.’ She sees it divided into collections like Stainmaster, berbers and patterns and the private-label carpets like Bedford Mills and Downs.” The displays themselves are first class. “We have an 8,000-square-foot showroom, and when a customer used to come in you would see her eyes roll because she had no idea where to go,” Bob said. “Now everything has its own area and it’s easily identified for the customer.” Debbie also attributes Stokes’ record-setting year to product itself. She drew this analogy to three national chains: “Look at Wal-Mart. It is not doing as well as it used to because of Kohls and Target, which offer more selection and better quality. Flooring America has moved us in the same direction.” Flooring America’s exclusive merchandising also lends itself to upgrades, she said. In fact, customers tend to upgrade themselves. “It’s easy because product is grouped by collection and star rating. Customers are looking at a product with two or three stars and say, “I want better, let me look at the four star selection.’ The baby boomers want more for their money. People here want nice things. I don’t care if it’s a large screen LCD TV or flooring. They want better.” And better products mean better sales, and that means better margins. “Our average ticket has increased as much as 35%,” Bob said. Aside from an increase in average ticket, the Flooring America product and merchandising have resulted in closing rates that are off the charts. “Our closing ratio has gone from 65% to almost 90%,” Bob said. Debbie added that instead of people taking what was available, they are going to more exotic woods. “When you see them buying out-of-the-ordinary products, it’s exciting for us. I never knew this is what they wanted. I keep asking, ‘What would we have been selling if we were not in Flooring America?’” She noted since joining the group, Stokes has extended its product selection to categories such as area rugs, granite countertops and radiant heat. And its ceramic selection has exited the basic realm. “If we had better product it was not affordable. Now it is very affordable through the Flooring America program.” How has Flooring America’s merchandising transformed this business? Debbie may have said it best: “This has taken us to the next level, and next year will be the biggest year this company has ever had. We are going off the chart.” |