Members of Flooring America praise the group’s leadership as a driving force of its success, if not one of the key reasons it has managed to keep its members, not only afloat but, successful during one of the worst economic periods our industry has seen. In times of struggle or prosperity, the corporate voice of Flooring America has been a guiding beacon for members who sometimes feel lost in the retail storm.

In that light, FCNews recently sat down with Vinnie Virga, the president and face of the buying group for the last six years to learn more about his vision and hopes for the group.

How has Flooring America helped its members, especially over the last few years?
Flooring America has always been focused on its members’ success. In the last three years especially, we’ve helped them remain profitable, or at least survive, in the most difficult times in our industry’s history. For some members it is our member performance reporting. For other members it’s giving them marketing that actually works. For some it is making their stores more appealing to their audience. It’s different for each member; each store is as different as its owner.

One thing that makes a huge difference is we allow members to focus on the day-to-day because we focus on the future. We warned them of the economic downturn before it hit and got them prepared. We are very forward thinking and help them optimize their business in order to be successful.

How has the group changed since its inception?
I think the group has changed an awful lot; I joined when The Maxim Group joined Shaw stores. It used to be truly a franchise and pretty loosely knit, but it’s now truly a cooperative. Members are thoroughly engaged in the direction of the company, helping us learn what works and what doesn’t. They are much more involved.

What has been the biggest change in the group’s history, positive or negative?
The transition from franchise to cooperative was a defining moment for the group. The way the group worked before, the corporate office would sell members on using its ideas but weren’t always best for each individual. When we changed to a co-op the members started to serve, not only with a voice but with power. That fundamental change took years to get over mistrust with The Maxim Group, but it was learned. By no means is it perfect today, but it’s night and day as to how much more empowered members are and where their role is in the group.

What is the biggest challenge right now?
Market share is the biggest challenge in each member’s market. We need to be focused on marketing and driving traffic into stores and converting those visitors to sales, even more than in the past. Many dealers have gone out of business and there is pent-up demand, a window of opportunity for our members to grab that business and increase their share. It’s always important to market well and grab share, but if they do the right thing over the next two years they will capture that demand in their area.

A lot of our business is between 55% to 65% repeat and referrals, so if they don’t grab new customers and make them family they won’t get those benefits. That’s why driving traffic and sending qualified buyers to member stores is important now. A year ago they were too worried to spend money but now they are ready. We need to talk to them in a way that makes sense.

If you had to point to the biggest obstacle in floor covering retail, what would it be and how has Flooring America addressed that?
It’s really about driving traffic. Members cut costs as much as possible two years ago. But now we are asking, “How do we get people in the door to drive profitability?” Internet marketing was a huge initiative on our part and it has had a huge impact that will continue to grow over the future.

One thing we’ve done with Internet marketing is to invest in highly visible paid searches that drive qualified leads to member stores. That’s been hugely successful.

What are the biggest changes coming for members?
Some members are having a hard time with technology. Unavoidably, it is becoming more important, whether it’s shopping online, using social media or just texting on a cell phone. Those are some of the changes driving our business. Some members aren’t comfortable with that and it is a challenge.

What are the biggest advantages to joining Flooring America over another buying group?
One of most important advantages is the relationship and collaboration with members; the networking is phenomenal. Members constantly comment on the competitive edge it gives them.

Merchandising and products that we bring through private labeling and breadth of products allow them to make better-than-industry- average profits and really appeal to our consumer in a way that resonates.

Another leg of that is we have phenomenal marketing tools that work, and access to ongoing education that allows ours members to be better than our competitors.

A few years ago, the group expanded to shopping at home and online. How has that been working out?
Online sales have been very powerful and shop at home is a subset of that. Traditional shop at home with a sampling visit hasn’t been as powerful but both are a part of our ongoing business. On average, the online tickets are three times higher than brick-and-mortar store sales.

Flooring America has really stepped up its social networking in the last year, and advertising now embraces electronic media in addition to traditional media. Have you seen a return on that?
It is still early with social media but we’ve seen great results with some campaigns. It is definitely a long-tailed approach to driving business. We are seeing real results but it’s not like a television ad where you run a campaign and people come in the store. Social media is more about creating a relationship with the customer. In the long run this strategy could be better because of the relationship-building component, but it is very different. We’re seeing results but not as immediate.

How would you say the group has changed in the years since the CCA purchase?
I think the group has become much closer, more like a family in many ways. People are more committed to each other’s ongoing success in addition to their own.