By Louis Iannaco
A positive and productive relationship between distributor and dealer has always been crucial to the profitability of both parties. During the current economic times, good chemistry between the two has never been more imperative. In what ways can the wholesaler help the retailer reach his goals, above and beyond supplying the necessary or desired products for his business? The answer may be through programs designed to make the retailer’s business life as easy and profitable as possible.

Jeff Garber, vice president and general manager of Ohio Valley Flooring (OVF), said the distributor’s 10-year-old, two-tier program provides several benefits to its 200 dealer members, one of which is its Web site. “We provide all group members with a Web site. This site helps consumers locate the dealer and provides details about the products they sell. Our site is the only group Web site that lets retailers link to manufacturers’ sites. We also maintain the site and help with customization for our members.”

The program’s benefits also include discounted swipe rates for credit card purchases, as well as three sales events a year with discounted products and P-O-P materials. “All members are invited to an annual convention with industry experts, motivational speakers and a full curriculum of educational seminars,” he said. “As part of the members’ training benefits, they can send two installers a year to one of our Installation Certification schools at no change. The convention is also complimentary.”

Scott Roy, vice president of sales for J.J. Haines and Co., said the wholesaler’s Loyalty Club, formerly called Flooring Plus, currently boasts 270 members, and offers small-to medium-sized retailers the opportunity to feel part of a much larger group. “We focus on non-aligned retailers, many of which aren’t a target for the larger buying groups due to size or their desire to remain independent. We offer an alternative to the buying groups that package services and benefits comparable to the large buying groups at a much more reasonable cost. “We also provide the flexibility and independence that these retailers desire,” he explained, “with no strict requirements. Finally, our alignment with Brand Source provides a small independent retailer with the buying power of 3,000-plus so he can grow his business at the same cost as many large retailers today.”

Terry Gray, senior vice president of marketing, NRF Distributors, said the most important aspect of the wholesaler’s Flooring Network program is, it can supply its 85 dealers with buying power, followed by group meetings featuring motivational speakers and product information. “With our private label programs, we can control each marketplace because we buy from so many vendors.”

Andrew Hartigan, manager of Durfee’s Flooring Center in Brunswick, Me., a member of the Flooring Network for 12 years, said there are many reasons for partnering with NRF. “It offered almost everything we needed under one roof. This means most of our shipping, invoices, advertising and products have been consolidated to one company. Because of this, the end result is we save both time and money.

“Also,” he explained, “for us here in the Northeast, shipping is definitely a factor, as it can be prolonged by our winter months, but NRF is able to reach us very quickly. NRF offered the whole package as well (carpet, resilient, tile, wood, laminate, area rugs, rubber and so on). When we joined, most distributors offered one or two items but rarely everything.

“I’m not sure how it relates to all the other distributors out there, but the personal touch that NRF provides is amazing,” Hartigan noted. “Its call center knows most of our staff members by name. I know it makes my staff a lot more confident about the service we receive, and they seem to really try to make sure our staff’s needs are taken care of. It’s extremely important to us that who ever we do partner with share a similar set of values, and that is a big reason we enjoy working with NRF.”

According to Garber, what helps set OVF apart from the rest is its alignment with Brand Source which brings in a whole menu of benefits, including “healthcare group rates, fleet purchases, legal assistance, human resource assistance, advertising and merchandising help. “In the past, we’ve provided this group with free displays, free advertising and consumer mail out advertising flyers. The final back end benefit is that we provide manufacturer rebates on most all purchases.

“Our program is unique,” he explained, “because we have no overhead burden like most buying groups. No individual profits from our group. It’s member owned and 100% of the benefits go to the members. Since it’s promoted by OVF, all the products come from one source. This helps with bundling of freight and saves the retailer money. We’re the only group providing credit to our customers and we deliver the product. With the big groups, the management decides on the vendors. With our group, the members have the power. Ours is the only group that has an installation school as part of its benefits.”

Roy also noted what differentiates the Loyalty Club from others is key program benefits such as “our ‘Rewards for Business Rebates’ on all products J.J. Haines distributes. We also offer a free customized Web site for each member, as well as three exclusive Loyalty Club sales events each year. We offer major discounts on customized marketing materials including targeted direct mail, newspaper inserts, etc. These items, due to our involvement with Brand Source, allow us to buy at significantly reduced rates.

“Finally,” he concluded, “we offer a variety of business improvement programs through Brand Source such as competitive consumer financing programs, healthcare benefits, human resource support, etc. For this year’s program we also introduced a Loyalty Fund of $900 per member to use as they deem [fit]. They can offset costs associated with merchandising and sampling, advertising, mill trips, training and education, and even our annual corporate trip program.”