Article Number : 4330 |
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| Date | 3/30/2009 9:01:51 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=4330 |
| Abstract | By Sarah Zimmerman NASHVILLE, TENN.—Alliance Flooring’s recent winter convention not only attracted 10% more members spanning all four divisions— CarpetsPlus, Carpetland, Floorco and Color Tile— than last year, but more importantly created a unique networking venue where those attendees could share best practices... |
| Article | By Sarah Zimmerman NASHVILLE, TENN.—Alliance Flooring’s recent winter convention not only attracted 10% more members spanning all four divisions— CarpetsPlus, Carpetland, Floorco and Color Tile— than last year, but more importantly created a unique networking venue where those attendees could share best practices. “Our No. 1 goal is networking with and supporting each other and our industry,” said Ron Dunn and Jon Logue, co-CEOs of Alliance. “If you can only implement your own ideas, you’re not going very far— especially in the down economy. We work as a group to expand the menu options for our members, teaching them necessary changes to increase business.” And, with Alliance reporting better overall numbers than industry averages, members were eager to continue learning how to expand business with new products and services. “We’ve increased membership by 14 in February alone, and each division continues to shine in its own way,” Dunn reported. “Our sales volume as a group is outpacing all others, and our suppliers continue to comment on the integrity and pleasantness of our membership. Now is a good time for growth, and we have some fairly aggressive strategies to not only increase business for current members but also continue to grow as an entity.” Better business strategies Logue and Dunn noted several areas of necessary change among best practices and business strategies for members to take advantage of over the next year. Suggestions included: • Cost saving—Utilize program rebates; design value specials; promotions; free training spaces; stock and roll programs for carpet; Wells Fargo consumer credit offerings; check phone and Internet price points; analyze toll-free usage; eliminate unnecessary features [bells and whistles], and get away from “dead-horse” dynamics—“I’ve always done it this way.” • Outside sales—Take ownership in guerilla marketing [unconventional methods]; keep people energized, and strategize regarding area store closings. • Financial and cash management— Attend Alliance’s seminar with Scott Goble, CPA; take advantage of monthly conference calls with Goble and Logue discussing financials; read the weekly fax, which covers a monthly financial topic—for example, accounts receivable, inventory control, supplier discounts, financial reports, banking relations and increased lines of credit—and call anytime with any problems. • Inside sales—Know your average closing rate—average is 27%—and close 10% more this year; head back to the basics; shop your showroom from a consumer perspective—review appearance, selection, greeting, message, value, education, relationships, follow-up, etc.— teach and analyze results, and avoid insanity— hen one continues doing the same thing and expects a different outcome. • Offer credit—Sell credit through consistent advertising; use minimum pay plans; offer long-term plans; change credit offers weekly, and utilize promotions. • Diversify—Expand your expertise—offer floor maintenance, commercial, window treatments, etc.—host in-store events; work with designers and realtors, and market through other related businesses. Logue and Dunn also said to stretch employees for ideas. “People need responsibility, accountability and authority,” they explained. “Expect great things from the people working for you.” In 2009, Logue reported a renewed emphasis on value across the board. He noted lower-priced installation products are popular right now, and listed an increase in vinyl and carpet. He also recognized the ever-rolling green initiative, extended warranties and enhanced color lines as growing trends in ’09. Further demonstrating this year’s popular products, Kevin Logue, vice president of marketing, and Ryan Dunn, vice president of sales, introduced members to some new products and merchandising for the spring. Overall, the meeting’s atmosphere remained fun and focused—both on member and supplier sides alike. Lee Aumsbaugh of CarpetsPlus Aumbsbaugh Flooring in Columbia City, Ind., who has been a member since 2006, said he continues to get better buying power with Alliance and feels his business is able to keep growing through with the group. “The industry is obviously slower than in past years, so we need to get as much help as possible,” he said. “Alliance’s seminars were very valid, and the group has helped us diversify—enter into the water restoration business— which increased business.” He noted all of the intros and expansions were impressive, and “the price points really made me feel like they are looking out for us in tough times.” Similarly, Andre Coelho—a member of the advisory board— of Wholesale Flooring in Fall River, Mass., said the trip to Nashville was well worth it. “We got the great member support and networking opportunities expected plus beneficial knowledge and products from Alliance,” he said. “In times like these, we need this kind of backbone behind us.” He said the key corporate assistance in areas such as the Web, green, merchandising, etc., are what make Alliance stand out from the rest. |