By Sarah Zimmerman
DALLAS— Flooring America/ Flooring Canada must be doing something right, as its members continue to outperform the industry at large. In fact, as an organization, members—nearly 500 accounting for 600-plus storefronts— were off only 5% in purchases through October 2008, noted Vinnie Virga, president, Flooring America, “which is quite a feat in such a down year. Furthermore, several of our dealers were up last year,” he said, citing three members who saw significant increases of 44%, 30% and 20%.

Virga added that Flooring America’s quest to find the ideal member is being made easier by the fact that membership queries have also remained strong. “We are getting more interest from dealers in other groups and independent retailers than ever before.”

One such retailer who is now sporting the Flooring America banner is Rob Menifee of Woodbridge, Va. Menifee, who recently switched his store name from Abbey Carpet & Floors, does about $20 million annually, which he hopes to increase with his new signage and support.

Menifee came on board in September ’08 due to the downturn in the economy after a successful eight-year relationship with its former group. “I felt the need to be more directly aligned with an organization that was in line with the course I charted for my business,” he explained.

Menifee said he chose Flooring America for its unique programs and passion. “When I got with Vinnie, I realized he was aggressively pursuing the same interests I had,” he recalled. “I liked Vinnie’s passion for what he was trying to accomplish. This was more beneficial to me than prior partnerships.”

Another program that caught Menifee’s attention was Flooring America’s proprietary Vision showroom, which about 50 members have incorporated in some way. “I’d never seen anything like it,” he said. “No one else I have ever dealt with has had this type of consistent appearance to the consumer.”

Apparently, customers feel the same way, as recent analysis show year-old Vision stores are outperforming their Flooring America peers in the same market by 22.3%. They also had an additional seven points in gross profit margin and provided a 58% return on investment in the first year of conversion.

So, how the continual growth and optimism in an otherwise dismal industry? Cooperation, strategy, innovation, programs and passion, said Virga, pointing to Flooring America’s recent convention in Dallas, where expenses were sparse and visions vast.

Inspiring energy, camaraderie and interaction, the meeting’s theme and format changed to incorporate regional breakout sessions as well as complete membership town hall meetings. Members were elated with the change, noting the “grass roots feel” gave the dealers more of a voice.

“This was a timely and practical restructure as it really allowed ideas and information to be brought about and shared by members,” said Gary Canizaro, president and owner of Premiere Floors in Kenner, La. “I was pleasantly surprised by the sensible, first-hand information.”

Rod Pettigrew, owner of Flooring America in Rapid City, S.D., agreed that although he attended the show with caution, he also was pleasantly surprised by the increased team spirit, camaraderie and exchange of ideas.

And, with the new format came focus on three areas to help members prepare for and prosper in the coming year: a 12-month plan, driving traffic into stores and inspiring confidence.

“We think the market is going to get significantly tougher, and members need an exceptional plan for the next 12 months,” said Virga and Deb Binder, vice president of marketing. “We are going to help them make that plan.”

Suggesting volumes will drop dramatically this year—estimating 20% to 30% off—Flooring America’s 12-month plan will include strategies for managing business at that lower volume, while remaining profitable.

Delving deeper, Binder said, “If they so choose, we will sit down and look at each member’s financials at no charge and help them build a plan and show where expenses can be cut.”

Second, Binder touched on not only driving more traffic into member stores, but maybe more importantly, what to do with it once it’s there—on and off line. “We are spending a lot of time executing,” she said. “We are looking at guerilla marketing tactics and doing more things online than ever before without neglecting traditional media. We have also developed a proprietary tool that allows each member to track virtually every lead they receive and respond in an incredibly timely fashion.”

It’s good to see the group looking ahead to more direct, unique and trackable marketing strategies, Canizaro mentioned. “There are many forward thinkers among us already moving that way, but it’s a fragmented effort. This will be a more cohesive, member-wide effort.”

However, Virga reminded, keeping the troops motivated and inspiring confidence is the key in today’s market. “People are getting bombarded by negativity, so one of the most important things is keeping them focused on things they can do.”

One of the ways Flooring America has done this for 2009 is through education. “We have invested millions of dollars in world-class education to members, which they can access via the Internet, telephone and live events 24/7,” he reported.

However, with a concentrated effort on the future, Virga warned the biggest misconception about aligning with an organization such as Flooring America is loss of independence. And, members couldn’t agree more.

“This group allows me to have my freedom as an individual, but also be a part of something much larger than myself,” Canizaro explained. “I am able to take advantage of all the great benefits— marketing, programs, vendors, etc.—provided by Flooring America and still stand on my own as an independent retailer, which is crucial in a down market.”

To learn more, call Virga at 800.450.7579 ext. 2127.