By Sarah Zimmerman
ATLANTA—The recent Alliance Flooring convention, appropriately titled “Alliance Flooring Network: Innovate in ’08,” focused on the future stating change as a key component to staying afloat and thriving in the upcoming year. Co-owners and CEOs Jon Logue and Ron Dunn, discussed solutions to combat the less-than-desirable economy such as diversifying business, cost saving strategies, maximizing store brand, bundled pricing, credit and advertising.

They also pointed to two new areas of retail opportunity—the green market and made in America—which the group targeted with new product introductions. “As leaders we build our business and settle on what’s comfortable,” Dunn said. “Today, we’re looking at our businesses; today it’s time for a change.”

And, ignite that sentiment they did as the 320 attendees engaged a panel of members who had mastered varying areas of their business; listened to keynote speakers including Vance Bell, CEO of Shaw, and Tom Lape, president of Mohawk Residential; learned about new product and programs, and net-worked with fellow dealers.

Bill Smiddy of Smiddy’s CarpetsPlus Color Tile in Terra Haute, Ind., shared with members the importance of using the Color Tile brand. “We have the most recognized flooring names in America; use this to your advantage,” he said. “I hang my hat on the Color Tile brand.” Smiddy doubled his sales recently after changing his store name to include Color Tile. He noted incorporating the CarpetsPlus and Color Tile brands into his store name shows focus on both the hard and soft categories—diversity—which is important especially in difficult times.

On the topic of diversification, Mark and Mary Ann Dougherty of Hoosier CarpetsPlus in Bloomington, Ind., said dismiss the fact that times are down and look toward the future. “We do builder, commercial and residential work and offer every product available. There’s nothing Mrs. Consumer can’t find that she wants.” They warned it takes staying after it every day, but “diversification has spread out the risk and increased business.”

Also boosting sales were Mark and Mike Montgomery of Montgomery’s CarpetsPlus in Venice, Fla., who asked members to consider bundled pricing. They pointed to two main attributes—differentiates from big boxes and salespeople don’t have to sell. “I can say, ‘It’s included in the price, or we don’t charge for that’ because my prices aren’t negotiable,” Mark explained. “The worst thing you can do is stand with a customer punching numbers,” Mike added. “This allows anybody to go on the showroom floor and sell.”

Jerry Butler of Fred’s CarpetsPlus in Torrance, Calif., urged the group to consider the commercial segment, saying it helps keep business on an even plane. “Commercial business is much more recession proof than residential.” He also noted it increases store visibility within the community and gives one more leverage with suppliers. He warned, however, “don’t take on any jobs you can’t afford to eat.”

Noting that the average consumer will replace her floor every seven years and that today’s consumer has less disposable income, Eric Langan and Kurt Duitsman of Carpetland USA in Davenport, Iowa, said if you’re not selling consumer credit and advertising, you’re missing the boat. Eric said looking at advertising as a cost of doing business and not an expense is key. And, Kurt said, “We look at financing as a product that we look to make a margin on. If you do it correctly, the higher your margin will be. And, if the competition doesn’t offer credit or advertise, there’s no competition.”

Keynote callings

Vance Bell, CEO of Shaw Industries, addressed members with a “realistic” view of today and tomorrow warning not to confuse reality with pessimism. “The flooring industry is cyclical, and it will come back.” He said during a recession there are winners and there are losers; winners differentiate their business, maintain confidence, make rational decisions and partner with strong suppliers. And, he donned the green movement “much more than a fad. Sustainability is one of the most important economic and social changes of our time. It’s about doing more with less.” He said there is a lot of potential for new business in this area if done responsibly.

Again citing the industry as cyclical, Tom Lape, president of Mohawk residential, said there are two types of dealers—those that put their horns out front and move fast, and those that pull the horns in and revert. He told members by attending the convention they belong to the first group, “which is good because it means you’re looking ahead.” He said the biggest challenge approaching in ’08 is to keep moral strong. “Make sure your team stays up for the challenge.”

Products and programs

Fifty-eight exhibitors provided a variety of products across all categories at convention, again giving members an opportunity to diversify, differentiate and grow business.

And, this year Alliance focused on four main introductions— EcoChoice Hardwood, American Classics Hardwood, Design Values Hard Surface and the Metropolitan Collection. “Our main emphasis was on ‘green,’ American-made hardwood and Main Street commercial this year,” said David Ellis, marketing manager.

EcoChoice Hardwood and American Classics Hardwood both speak to two major areas of opportunity—green and made in America—each stressing a different quality. EcoChoice offers environmentally responsible engineered products made of an HDF fiberboard core and real hardwood face—sourced from sustainably managed forests in the U.S. And, American Classics provides traditional hardwood styles made in America—also sporting sustainable face veneers.

Ellis said Design Values is a new hard surface program designed to display limited-time carton values on high-styled hardwood and laminate products made in the U.S., which will be updated throughout the year to bring new savings opportunities.

And, highlighting the commercial segment, the Metropolitan Collection features a simple color-coded, icon-based selling system “allowing salespeople to easily determine the best product for end use,” Ellis noted.

Though tough times were on everyone’s mind, overall member mentality remained strong, confident. “Everyone is upbeat and positive about ’08,” said Ryan Dunn, vice president of sales, and Kevin Logue, vice president of marketing. “Our members are entrepreneurs at heart so when times get tough, they really shine.”

Ryan and Kevin’s advice looking ahead turned again to change. “We encourage all dealers to diversify into commercial, innovate your merchandise by offering green and made in America products or add-ons like window fashions or wall paper, and, most importantly, stay positive.”

Dunn agreed, stating the group’s goal for ’08 will be to help storeowners re-evaluate their businesses through challenging their comfort zones. “We give them a menu of options and allow them to choose what works best. We’re not a dictator.” And, members take note of and appreciate this mentality.

Ron Laguardia, a member of Alliance for eight years, said the group does a great job of giving its members ideas, support and strategies. “When you come to an event like this, it’s a give and take, and you feed off of others’ advice and stories.”

Similarly, Brooklynne Potter, first time convention attendee, said, “This is more than I expected from a buying group. Getting other people’s perspectives has been huge, and everyone here is very open to sharing ideas, which is a nice change.”

Dunn said this continued sharing of ideas is key for the future. “If I could give members one piece of advice heading into ’08, it would be to remain positive, be strategic, talk to a lot of people and start learning again.”