By Steven Feldman
BANFF, ALBERTA, CANADA—Against the backdrop of one of the most picturesque settings in North America, the National Floorcovering Alliance (NFA) took strides to become even more important to its vendors, which, in turn, moves it closer to its ultimate goal of developing a brand identity. This is achieved through proprietary brands and private-label programs, some of which were rolled out at this meeting in carpet, ceramic, wood and LVT.

“We know why there is value in the NFA name,” said Jeff Macco, Macco’s Floor Covering, Green Bay, Wis., and NFA president, “and now we want to convey that to consumers. How? Logos on doors, consumer advertising, displays, sampling, etc.”

He emphasized the respective committee chairs have done a tremendous amount of work in bringing exclusive private-label offerings to the NFA. Take hardwood, for example. Sam Roberts, Roberts Carpet and Fine Floors, Houston, worked out a number of deals with major suppliers to bring exclusive lines to the NFA. As one example, Armstrong, will provide the group with a cross-section of products across all its brands ranging from the very high end to commodity under a still-to-be-determined name. The 48-SKU collection will be housed in a smart display with oversized 20 x 27 samples.

“The most important element of this is to create a vehicle for the group to run promotions because of the commonality of product offering,” Roberts said. “Also, as a group we need to be able to deliver measureable results for a vendor. How do you do that without [a common] focus?”

Another exclusive deal about which Roberts is excited comes courtesy of one of NFA’s Tier 2 vendors. The program includes many American-made, solid hardwood products, including 7-foot lengths, in a variety of species at very competitive pricing. “We are not getting this type of product from our core vendors,” he said. “This is an opportunity to provide an item the customer deserves to see.”

Policing its own

NFA, as much as any group, puts a premium on supporting its vendors. The greater the support, the greater the opportunity for exclusive deals, private labels and preferred pricing going forward. To that end, the membership approved a motion by a resounding margin to change its membership agreement whereby if a member falls below a certain rebate dollar threshold, it cannot remain in the organization. The group tiered these minimums for the next 21 months to allow members to build up their rebates earned inside the NFA.

Macco said it is all about maintaining the integrity of the group and living up to its agreements with its vendors. “We are a group of the largest independent retailers and subsequently have an obligation to police our own membership. We must maintain the status of having the dominant player in the market.”

Members now have until Dec. 31 to comply with the minimum rebate requirements. If they fall more than $10,000 short, they face automatic expulsion. If their shortfall is under $10,000, they have another year to get their rebate dollars in line with the minimum requirements. However, in the interim they will forfeit all voting rights, including the ability to veto any potential new member.

Macco does not expect this to have a significant impact on the group given that only a handful of last year’s 35 members may have an issue.

He reiterated the goal is not to expel any NFA member, rather to have them utilize key NFA vendors. “You could be a $10 million dealer (the minimum sales volume as per NFA bylaws), but if you are not generating a lot of rebates, you are not supporting NFA vendors. Your value to the group becomes limited.”

As it stands, any one NFA member has the power to block a prospective retailer from joining the group. It could be for any reason, from geographical competition to personality clash. There is prevailing sentiment that a member who is not significantly supporting NFA vendors should not have the power to prevent the inclusion of a dealer who could strengthen the group.

Because one of the hallmarks of the group is its close-knit structure, the NFA will do all it can to help any member who is not meeting the rebate requirements. “We are not looking to kick a guy when he’s down. If it is the economy that is causing problems, we want to come up with a game plan to help the member support our vendors,” Macco said.

NFA in growth mode

The group added three members since the November 2009 meeting in Naples, Fla.: Jimmy Lyles Flooring Gallery, Jackson, Miss.; Great Lakes Carpet & Tile, Ocala, Fla.; and Dolphin Carpet & Tile, South Florida. Each brings something to the NFA.

“Dolphin is a Mohawk Floorscapes member, and we could use more help on the Mohawk side,” Macco said. “It also does a lot of importing, and there are certain members in the group who have come to us requesting help in this area. Dolphin is also more than willing to participate with NFA-approved vendors and share ideas. Last but not least, it fills a geographical void for us.”

Jeff Katz, president of Dolphin, said the biggest reason for joining the group is networking opportunities. “It gives me access to like-sized retailers in a non-competitive situation to get ideas that can help improve my business,” he said.

Jimmy Lyles was attractive to the NFA because it is a dominant player in its state, Macco said, one where the group did not have a presence. “[T.J. Anderson, owner,] is also the epitome of a gentleman, a team player who everyone immediately liked.”

Anderson took over the 52-year-old business in 1981 and told FCNews NFA was attractive to him for three reasons. “First, it is the premier flooring group in the country. Second, it gives the ability to learn from people who do a great job. Third, we anticipated our buying ability would be better, but we didn’t realize how much better.”

Great Lakes Carpet & Tile is also a very strong Mohawk player and a Stainmaster Flooring Center. “This is a second-generation retailer who is very willing to share ideas,” Macco said. “We received very positive feedback from all members.”

Pulsipher retiring

The Banff meeting marked the final soiree for NFA veteran Steve Pulsipher, director of flooring for R.C. Willey, Salt Lake City, who last year announced his retirement after four decades in the flooring business.

Pulsipher, long-time treasurer for NFA, was honored by members and vendors as part of the opening night festivities. “I think the most important thing about Steve is his uncompromising integrity and honesty,” Macco said. “He’s a man of a few words, but those words are well chosen. And he’s a tremendous buyer with an uncanny ability to get the best deal. Not only that, he was always willing to share and teach his buying skills to anyone who would ask.”

Bill Cogdall, co-president of Contract Furnishings Mart, Portland, Ore., added, “He always gave 110% to the group. Where a lot of people would sit back, he was always in the game. He is honest as the day is long and always kept his word to the vendors.”