Overland Park, Kan.—As Big Bob’s Flooring Outlet announces its 30th Anniversary this month, flying on the wings of success as a prominent leader in the floor covering industry, what better way to celebrate than focusing on the next 30 years with vision, determination and exceptional return on investment?
According to market trends, over the last five years, very few new flooring stores have opened. However, experts predict that within the next five years, a new cycle will emerge and brave entrepreneurs will be jumping back into the arena to open and expand their flooring business, and those early adopters will be rewarded disproportionately with exceptionally high profits as the market comes back.
From 2007 to 2009, the flooring industry lost roughly 43% from its peak sales volume. Especially hard-hit during the economic downturn were independent retailers with thousands of them sadly closing their doors; yet at the same time big box stores, such as Home Depot, and Lowes continued to add more units and are now estimated to own 27% of the retail floor covering market share.
Of course, this data is not new news to you but David Elyachar, founder and CEO of Big Bob’s Flooring Outlet of America, Inc.—the National Franchisor of Big Bob’s Flooring Outlet—is determined to change that dynamic and knows precisely how to do it. “If you have ever had a plan to own and operate a value proposition retail store, this is the most perfect time to get started,” Elyachar said. With Big Bob’s proven turnkey systems, Elyachar said the Big Bob’s Franchise system will help an entrepreneur go up against the 800-lb. gorillas and win all day long.
What began in 1983 as a used carpet shop in Kansas City, Big Bob’s has evolved into a national franchise organization with over 35 locations across the country. Marketed as “The Value Proposition Floor Covering Model,” the plans are to grow to 125 members, 250 stores, $500 million in annual sales.
Whereas Big Bob’s used to be mostly about sourcing plunder, it is now 70% running line and 30% opportunist buys and allows retailers with multiple formats to better utilize the inventory getting significantly quicker turnover. Big Bob’s also enjoys a higher than average closing ratio because of the strong value proposition to the consumer while garnering very high 45% to 50% gross profit margins for its franchisees. The marketing force behind Big Bob’s has favorably transitioned from edgy, and, yes, sometimes offensive advertising to more sensitive, memorable and humorous campaigns that harness the knowledge that women are primarily making the buying decisions these days.
As for the ideal member for Big Bob’s, Elyachar is quite clear in who is potential partners are. “Our best prospective members today are either in the multi-family, new construction or mid- to high-end retailers, with over $5 million in sales who understand the concept of increased market share in their markets through alternate brands and want to be in the value proposition niche” noted Elyachar. “We have streamlined our inventory and our current business plan allows us to operate a multi-store operation with up to 40% less inventory in a smaller footprint.”
When asked about their success thus far, Elyachar said, “We have always under-promised, over-delivered and exceed expectations on all that we do. First and foremost, we are a people business and that translates to our customers, our employees, our installers, our vendors and our members, all of whom are more important than the business itself.”
So, as for the next 30 years, Big Bob’s vision is to continually improve its business model and attract, support and retain the best members by increasing their quality of life, profitably. If expanding your business has been an appealing idea, then put some action into those thoughts. Don’t sit back and let the big box home centers take more. Be proactive and not reactive. After all, you can’t complain about what you have if you don’t take action on what you want. “If you have ever had a plan to own and operate a value proposition retail store, now is the time,” said Elyachar.
For more, call 913.789.7773 or visit bigbobsflooring.com.