By Sarah Zimmerman
BALTIMORE—Consolidated into one summit meeting this year, J.J. Haines Loyalty Club (HLC) attendance hit a new high, even over combined meeting numbers of years passed. With 152 registered accounts and nearly 300 people at the event, Bruce Zwicker , CEO, and Scott Roy, vice president of sales, said now is the time dealers need to align with a distributor with whom they feel confident will help through the storm—case in point having 14 new members already joining the group this year.

“We saw this coming and did not sit back,” they said. “We’ll be fine in ’09 and growing again in 2010.”

And coming off 12 consecutive record years, HLC continues to be upbeat and focused on its strategies for surviving and increasing business this year— Loyalty Club members were up 6% from the average market, and showed a 2% year-over-year increase in ’08. On a corporate level, Haines has already taken action to continue the climb:

• Faced downturn head on with a positive attitude,

• Cut internal costs,

• Consolidated certain delivery routes (“hopefully working to members’ benefits”),

• Reduced inventory of slow-moving product,

• Continued investment in new programs and products,

• Added value (ideas to drive sales, staff training and Web site updates).

“We are a financially strong, well-balanced distributor with confident supply partners and members built on years of trust and joint business efforts,” Roy said. Backing that statement, Haines celebrated two special events this summit: its 135th birthday and its 100th year with Armstrong. “We are proud to be the last of 12 original distributors doing business with Armstrong,” Roy beamed.

Paul Murfin, vice president of sales for Armstrong, addressed the group: “Haines has been a great partner as it matches us on our level of value and customer service, and for this we’re committed to working with you,” he said. “We’re proud to bring you [our dealer partners] the No. 1 brand in the industry, which puts consumers in your stores, and continue our promised focus on providing the best products in the industry along with the best service.”

Aside from the aforementioned success of the group, there are several benefits to belonging to HLC: Rewards-4-Business (valuable rebates); annual summit meetings; loyalty funds; annual sale events calendar; job site signs (new this year); Internet marketing, advertising and promotion; consumer financing; savings on business resources, and training and education. Zwicker and Roy also surveyed attendees to poll what areas the group felt needed additional support.

And offering up their own extended suggestions for success, Zwicker and Roy told members, “To survive and beat the tough economy, you have to buckle down and manage expenses, attract customers (advertise), turn shoppers into buyers (close ratio), watch cash (build a strong relationship with your bank) and continue doing business with strong partners.”

Both Haines members and suppliers agree the level of added value brought by working with HLC is undeniable. “Being an HLC member outweighs [by far] what other distributors have to offer,” said Gary Steppler and Jane Detwiler, co-owners of Gary’s Carpet & Flooring Depot in Pottstown, Pa. “Haines does a lot of product research, so we trust its judgment, and it’s not so big you get lost. When the president knows your name and calls just to see how you’re doing, you know you’re partnered with someone who’s looking out for you.”

And Chris Thompson, vice president of sales and marketing for Boa Franc, makers of the Mirage brand, had a similar perspective as a fairly new—15 months— supplier partner. “This is a great group of loyal dealers with outstanding sales numbers, which gives them value.” He noted response to Mirage since it joined Haines has been phenomenal. “It’s gratifying to see this number of enthusiastic people interested in their business and making successful decisions.”

Amie Thomas of The Home Center, in Apex, N.C, and HLC’s Dealer of the Year, commented on Haines’ partnership with BrandSource as her store recently expanded its residential offering, which was at 20%. “With Haines reps’ help, we aligned with BrandSource for training, ideas, advertising, store design and more,” she said. “Haines made the transition easy and helped us increase business. This is where you see the difference—the people. It’s a top-notch group; there is not one person I don’t enjoy and consistently learn from.”