Article Number : 312 |
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Date | 3/3/2004 12:48:00 PM |
Written By | LGM & Associates Technical Flooring Services |
View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=312 |
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Article | Tampa, Fla.—Running a successful retail floor covering store is a difficult job, however, some dealers are able to outpace their competitors, not due to luck, but because they do things better. This message, which came directly from Stephen Silverman, president and COO of Abbey Carpet, set the mood for the more than 500 members who gathered for the group’s winter convention. “Working hard is a waste of time if you are not working smart,” stressed Silverman as he encouraged retailers to replace those products that are not working with ones that are new and innovative, and “have a competitively priced showroom. “Be a leader in new product introductions and displays,” he continued. “Such as the new Abbey family of private brands in the Abbey Showcase merchandising system which feature all new cherry wood displays. Support the programs and products we introduce because they have been designed exclusively for you. Advertise consistently by using the most effective medium—TV—and, be consistent in your message.” “The programs Abbey comes up with provide us with exactly what we need to stay two steps ahead of the competition,” explained Darryl Levy, owner of Abbey Carpet in Miami. “It gives us exactly what we need. It’s the most productive show I’ve ever attended.” Some of the new product lines introduced at the convention include: Alexander Smith hardsurfaces by Mohawk; American Showcase by Shaw; National Stone Program by MS International; Dublin by International Wholesale Tile, as well as products from Alloc, Armstrong, Congoleum, Beaulieu, Milliken, Wilsonart, and Midwest Padding, to name a few. However, franchisees were “most excited” by two programs—The Premier Stainmaster Carpet Collection and a new Abbey Credit Program. The Premier Stainmaster Collection features Stainmaster, Master-life, Xtralife and Tactesse styles in a variety of constructions and price points. Four manufacturers—Beaulieu, Dixie, Gulistan and Royalty—make up the collection. Members who participate in the program’s select options will automatically become a Stainmaster Master Store which will entitle those dealers to extra benefits from the brand’s owner, Invista. “The Premier Stainmaster Collection has been very well receive here,” said Wayne Leathers, account manager for the Stainmas ter brand. “This opportunity affords us the chance to build better relationships with the smaller dealer and, we have already seen the benefits. Nearly half of the group’s members are participating and I expect that number will increase significantly.” “Stainmaster is the most recognized brand among consumers,” added Steve Griffith, Invista’s vice president of residential flooring. “About 95% of consumers know the Stainmaster name so, it’s an easy sell for salespeople.” “Aligning ourselves with the Stainmaster brand gives us the opportunity for national exposure with a familiar name which is trusted by the consumer,” explained Levy. “It gives us a unique, exclusive fighting chance that cannot be shopped around. Not only will it boost sales, it will enhance our profit margins.” “The Stainmaster program is excellent,” noted Jim Johannes of Golden State Floor Covering in Hesperia, Calif. He brought his wife, Debbie, along to help who added, “All the work has been done for us, we just have to sign up. There’s some excellent new products here and more West Coast vendors which is nice for us. It has allowed us to build on our relationships in an intimate setting. “We will be taking advantage of some of the new product offerings,” Johannes continued. “We came looking for more stone and hard surface products because they currently account for half of our business and continue to grow. And, the Abbey Credit Program is wonderful. We have already signed up with Wells Fargo. We feel this partnership will really increase our competitiveness.” For years Abbey members have experienced success from the Abbey Credit Program, however, “Our new partnership with Wells Far go Financial Retail Services has shown enhancements that will create additional opportunities for participating members,” explained Ted Dlugokienski, Abbey’s vice president of finance. The credit program has been expanded to provide members with more flexibility necessary to support an advertising campaign throughout the year as well as an ongoing commitment for an aggressive approval rate that will exceed the consumer’s initial purchasing requirement. With these enhancements, Abbey Credit gives members the ability to aggressively market financing on a daily basis as opposed to during periodic sales events. “The opportunity this creates is huge,” said Dlugokienski. “Historically, our financing has always driven a higher average ticket. This is the direct result of the consumer being comfortable with purchasing more and/or better product when she has at least a year to pay.” “We need to compete with other industries who have large ticket items such as home furnishings and the automobile industry,” said Silverman. “Our credit program with Wells Fargo allows our members to do just that. It has been well received.” “We signed up with the credit program in January and are very happy with it,” noted Brent Farrow, owner of Abbey Carpet of Port Charlotte, Fla. “The application process is easier and we get quicker approvals which is important because today’s consumer does not really want to wait long. “Abbey conventions are outstanding because they are not repetitious and we get nice, exclusive programs such as the Stainmaster collection,” he added. “But, we aren’t pressured into taking on the programs like other groups. We can choose to take on part or all of the programs offered depending on what our needs are. As Phil Gutierrez, Abbey’s chairman, says, ‘What we do is in the best interest for you but, if you don’t feel you need it then you may choose not to take part in a certain program.’ “We did, however, take on some new introductions from Nourison which we had not planned on,” Farrow continued. “The price was so good for the area rugs, we had to take advantage of it.” It wasn’t only new products and services which drew the large crowd. Both Jeff Lorberbaum, Mohawk Industry’s president and CEO, and Julian Saul, president of Shaw Industries, addressed the franchisees on the state of the industry. Both told members they expect growth for the entire industry in the coming year and beyond. “The opportunity for growth is exceptional,” said Lorberbaum. “Housing sales are up, consumer confidence is up and the economy is strong.” He continued by complementing the group, “We have a true partnership and, if you succeed, we succeed.” Saul added, “I agree with Jeff. The economy is strengthening. I just have one tip, diversify. Don’t get stuck selling only to the residential community. You’ll miss out on a big opportunity if you don’t get involved in the contract business.” For additional information, call Abbey at 800/873-2223. |