S&G Carpet & More, one of the largest specialty flooring retailers in the U.S., about two years ago launched its retail strategic alliance program. The idea was to allow smaller retailers to capitalize on S&G’s 60-plus years of proven success, which becomes even more important in a down economy.

The S&G mantra is its ability to offer affordable quality from around the world, mixed with products from domestic manufacturers. All carpet products and about half of the hard surface offerings are private-labeled, which creates an opportunity to offer smaller retailers higher-margin products that will differentiate them from the competition. When S&G imports product, as it does with some of its laminate, its suppliers manufacture to its specifications. “We design it, color it, pattern it and then private label,” said Gary Miceli, president.

Members can also piggyback on S&G’s prowess in marketing, merchandising, advertising and more. According to Miceli, the key to the program is flexibility. For example, members will have the option of keeping their existing name, changing to S&G Carpets and More or incorporating S&G into their existing name. This allows them to remain independent and maintain an identity in the marketplace. At the same time, there are advantages to using the S&G name and promoting the affiliation. “We spend a lot of money a year in print, cable TV and radio advertising,” Miceli said. “We have no problem if they want to ride our coattails.”

There are a number of advantages to joining the S&G alliance:

1. Increased profitability and margins (S&G’s average margin is 44%). S&G’s exclusive products will never be found on the Internet or on the shelves of another store down the street. As well, private labeling prevents price-comparison shopping. Finally, retailers have the benefit of capitalizing on purchasing power that is afforded only to retailers the size of an S&G.

2. Advertising. Members can get ad slicks with the ability to customize. They can also take advantage of already produced TV commercials and radio scripts with personalized tag lines.

3. Merchandising and store layout. S&G will come in and re-do and re-merchandise a showroom to maximize space and create a professional and inviting environment.

4. Training. S&G provides a full training manual for selling and an installation training CD.

5. Financing program link to Wells Fargo. Selling credit results in higher ticket prices.

6.Customized Web pages, dealer locator on the S&G Web site and sales calendar.

S&G is currently looking at varying finance programs, health insurance, a linked computer network and trusted resource list for its affiliates. Manufacturers are also buying in. They are more accepting of the program, cooperative with the pricing and more supportive of the affiliates.