By Kathlene Vercellino
Hicksville, N.Y.—In today’s market, specialty flooring dealers need to remain competitive in order to survive. One way to gain market share is to incorporate a private-label financing program into the business.

Shawn Bayat, president of Quality Carpet One, noted that financing is very important to his business. “It has been a tremendous help in increasing our sales, especially during promotions.

“We have signage highlighting our financing program displayed throughout the showroom and we include it in our advertisements,” he added.

He explained that his salespeople go over the details with customers during their presentation. “At some point during the customer interview, our sales consultants explain the process to the homeowner. Once we find out what her needs are, the consultants might even suggest a higher-ticket item. Consumers have shown that they want the best and are willing to pay for it, especially if it can done over a period of time.”

“A sales representative can offer private-label financing to help a consumer make the right flooring purchase as opposed to settling for a product that may not be right for her specific needs,” explained Catherine Wilson, CitiFinancial’s vice president of marketing.

Consumers aren’t the only ones who reap the benefits. “Our average ticket sales increase and that means higher profit margins and higher closing ratios,” said Bayat. “Its a win-win situation for both sides.”

“Private-label financing is so important to retailers because it is a necessary tool to stay competitive in today’s market,” said Wilson. “It allows the homeowner the opportunity to manage the purchase price over a longer period of time. Store owners who don’t offer it will most likely lose the sale because consumers will go somewhere else.

“In addition, it can help increase sales and drive customer loyalty, which is something we as an industry probably haven’t emphasized enough,” she added. “Having a private-label account with your store’s name on it is very powerful.”

As incentives, CitiFinancial provides a number of marketing services for dealers such as point-of-sale materials, direct mail and brochures listing the benefits of using private-label financing. “As part of Citigroup, we position ourselves as a financial services provider,” noted Wilson. “That means that we bring much more to the table than just a competitive price.”

Executives point out that a store which does not offer financing “only creates a barrier and why have that when it’s not needed. There is a reason the big boxes offer financing. They understand how important it is in increasing their business.”

“It is common knowledge that private-label credit cards drive average sales higher and this holds true in the floor covering industry,” concluded Wilson.

“It can be a vital part of a retailer’s business.”

For more on CitiFinancial or to get involved in its private-label program, visit www.citifinancialretailservices.com.