August 28/September 4: Volume 32, Issue 6
By Lindsay Baillie
Leesburg, Va.—Thinking outside the box can help dealers discover new ways to grow their businesses. That was the primary message Floors & More management sought to drive home to members in attendance at its summer convention here.
The message correlated directly to the theme of the conference, “Unconventional.”
The two-day convention provided Floors & More members the opportunity to network, hear best practices from peers, as well as learn about new offerings and rebate opportunities from vendors. The show also provided members with multiple solutions to combat changing consumer buying habits and develop a greater digital footprint.
More importantly, the group stressed the importance of building quality relationships with customers, vendors and other members. To that end, the group’s vendor partners had the opportunity to participate in any of the member events, including the general session, keynote and activities. The goal was to cultivate and continue member/vendor relationships.
“We believe our vendors are our partners and our members are our partners—so we have a three-part relationship,” said Vinnie Virga, founder and CEO, Floors & More. “Our job is to make sure that relationship is incredibly strong so there is great, unfiltered communication between us so we’re helping each other and challenging each other. We believe only by having that kind of relationship between all the parties do we get the best growth, the best ideas and the best participation. This is the ‘Unconventional’ convention.”
Doing things different is at the core of the Floors & More group from its rebates program to its partnerships with Soci, a platform for managing social media, and 919 Marketing, a national marketing agency that provides members with relevant, localized and personalized content that targets all types of consumers. In addition, the group has added new private labels, expanded its vendor lineup and launched new websites for Floor to Ceiling and Big Bob’s stores.
Over the past year the group has worked on fundamental elements to provide members with the tools they need to succeed. Part of this adjustment is how Floors & More members invest in the buying group. “All we did was flip the equation,” Virga explained. “We made it so the members have that upfront. The rebates are paid out and the vast majority of the rebate dollars goes to the members (around 80%). By making that flip it took those members who weren’t really committed to the program or buying from our vendors and it made it so they had to make an investment and commit to the group or they wanted to go—which is exactly what we wanted. We wanted people who were committed—who were going to stay and support the vendors.”
Virga believes a member’s investment should be viewed more as a marketing fee since the group covers social media, websites, commercials and review sites. Floors & More also provides unlimited education through the WFCA education library and the group’s full product library. It also covers convention attendance (excluding room costs) as well as a rare opportunity to meet with executives from the Floors & More corporate team for a consultation.
“Everything else we’re doing with the rebates is really a return on their support of the suppliers,” Virga explained.
Now that these elements are fully in place, the group plans on growing dramatically, according to Virga. “We’re starting to add new members a little at a time. We’ll also be growing through acquisition. You’ll definitely see us make some acquisitions over the next couple of years. We plan on being 700 or 800 stores stronger in the next five years, and we’re very committed to that number.”
New vendors, programs
Floors & More continues to expand its list of vendors, which includes Mannington, Phenix, Armstrong, Stainmaster, Wolf, Graber, USFloors, Nourison and RFMS—to name a few.
“The vendors here are top notch,” said Dave Bradley, vice president of Floor to Ceiling, Ottawa, Ill. “I really think [Virga] is pulling in great people for us on the technology side as well.”
The group also recently launched an insurance program whereby store owners, installers, builders, remodelers and trade professionals are able to receive life and accident insurance as well as a 401(K) plan. Another key program announced at the convention is the development of an e-commerce system for member websites, which the group plans to launch by winter.
Floors & More management believes e-commerce is a crucial space for retailers today. “You need to be online with your products so consumers can first see it and then pick it,” Virga explained. “[While] our business is still very much tactile, you need to have it there because consumers demand it. It’s the price of admission of being a retailer today.”
Floors & More members like Lowell Matthys, president of Floor to Ceiling in Marshall, Minn., are embracing e-commerce. “Whether you like it or not, that’s the way our technology is moving. We carry more technology in our pockets than ever. That aspect of the business is changing.”
Matthys’ store already has an online presence, and he runs a website and Facebook page in connection with Floors & More. “They’ve set up the web page for us and we’re also going to be doing some postings to Facebook through Soci.”
For others, such as Roger Lake, owner of Lake Design & Décor/Floor to Ceiling in Manchester, Iowa, Floors & More not only offers new technology and group buying power but also education. In particular, he cited keynote presenter Mark Sanborn, author, entrepreneur and professional speaker, who conducted a presentation about leadership and ways to drive improvement. The talk provided valuable insights for Lake and his staff. “[Sanborn] was talking about motivating and how to get sales.”
Overall, the convention hit on a couple of key points for members such as Joe Virga, regional manager, Floor to Ceiling, Auburn, Mass. “It opened my eyes to our company’s potential and the importance of embracing change.”