Olga Robertson, President & Bob Hill, CEO - FCA

By Steven Feldman
Chicago—No one will ever confuse FCA Network with the Carpet Ones and Abbey Carpets of the world, but that’s just fine, says Olga Robertson, president, the offshoot of Floor Covering Associates, the top 20 retailer of which Robertson is also president. She is intent on adding only “the right kind of dealer,” but the ones who do make the cut enjoy benefits similar to those offered by the more recognized groups. As well, this group is unique, Robertson points out, in that it is the only one founded by a retail team which remains on the front line. Her mantra: “We are retailers helping other retailers.”

But that’s not the only differentiator. While the larger groups seek to build a national brand and implore members to incorporate their names into the dealers’ signage, FCA takes the opposite tack. “We actually encourage our members not to use FCA in their name, although they are welcome to say they are affiliated with FCA,” Robertson said. “My job is to promote their image in their marketplace, not mine. Their store is their brand.”

Members also benefit from what she refers to as Third-Party Intervention. At the group’s annual convention here earlier this month she told members, “We can intervene on your behalf to expedite an order from a mill. We can also intervene on claim issues when you are initially turned down by a supplier. We know what buttons to push. We know who to call. I don’t know of any other group that can do it or wants to do it. Because we are a $40 million-plus retailer, we do it everyday.”

FCA offers a number of other services. For example. it will lay out every member’s showroom, and once samples are shipped “we go out and install them,” Robertson said. “Then we get the salespeople comfortable with the products. Everything we do is labor intensive and custom.”

Members immediately see results. “My store was in a state of chaos,” said Bob Gaither, Quality Carpet & Flooring, Akron, Ohio. “There was no rhyme or reason for anything with displays and samples on top of each other. FCA came in and rearranged my showroom; it became a smart showroom with a better product mix. And I’m selling better goods. My business increased 20% and I raised my margin a couple of points.”

Much like the larger groups, private branding is a big part of the FCA story. Mike Miles of House of Color in Findlay, Ohio, has seen his business increase through proprietary brands. “The most profitable decision we made was obtaining private label branding through FCA. For the size of our town, there is a tremendous amount of competition. The private labeling allows us to maintain our margins without being shopped. They cherry pick the products; they’ve done the research on what sells and what doesn’t.”

Dan Knisley, Wholesale Carpet, Fox River Grove, Ill., agreed. “I have competition up and down the street; I was losing every other sale. Now I have my own exclusive label in my market. Plus, before I wasn’t seeing all the products the mill had to offer. One day I realized I didn’t even have the best-selling product in Illinois in my store. I was like an island. By joining FCA I can spend my time selling the customer instead of being sold by the mill rep. FCA helps me get the right prices and right products. We are selling product over the past year we never had the opportunity to sell before.”

Networking is another big part of the FCA story. Because Robertson strives for an intimate group, members can feed off one another. For example, Daryl Ciokewicz of Checks Floorcrafters, Onalaska, Wis., looks forward to the annual convention as a means for “becoming a little more educated. We want to learn from other members. How do you pay salespeople? What computer system do you use? How do you pay your installers? I can’t ask my competitors, but the people in the same room are not your competitors; they are your partners. We are going to walk away from this convention with a way to improve our business.”

With wood floors continuing to be in high consumer demand, FCA Network rolled out Signature Hardwoods, its private branded program. “It took four months of research to determine the best products for the group,” Robertson said. The line consists of 40 popular choices, including exotics and handscraped. The collection runs the gamut of styles of price points.

Members embraced Signature Hardwood en masse. According to Robertson, FCA received almost 100% participation, and those who did not participate do not currently sell wood.

She received an equally great response to the new Signature V-TEC resilient display from IVC. The private-labeled product is a cushion-backed, fiberglass, PVC-encapsulated vinyl that can be installed over any smooth surface. IVC claims the product is 100% dimensionally stable and it will never grow, shrink or curl. It can be utilized in new home construction, residential replacement and property management. What’s more, IVC offers in-store display set-up and training as well as significant inventory in Dalton, said Jim Patrick, national accounts.

Continuous Growth

Launched in 1998 with 12 members, FCA Network now numbers 54 with purchasing power approaching $88 million. While the group’s dealers are concentrated in the Midwest—Ohio, Wisconsin and Indiana are the strongest states —it has expanded beyond its geographic roots into locales such as Denver, Alabama, Pennsylvania, Albuquerque and Arkansas.

It is the outskirts from where the lion’s share of future growth will have to come, especially considering Robertson would like to get to 150 members. “How do we grow is the question. We want to have the right kind of dealer.” Seven dealers were added in 2005, she said, and no one dropped out.

So what is the profile of the typical FCA member? According to Robertson, he does between $1.5 million and $2 million a year, although some do substantially more; he has been servicing his market for a long time, he is embedded in the community, building his business on repeat and referral customers. “But he realized he needed to change a few things. In some cases he may want to leave the business to his kids and wants some support.” She added that most members specialize in retail replacement business; few are stocking dealers. “Some are the dominant player in their market, others are in areas where there are 16 retailers within a five-mile radius.”

For more information on FCA, call 888/322-5959.