San Antonio—In his keynote address at the FCA Network annual convention, held here, Jason Randolph, senior vice president of sales for Mohawk, spoke to FCA Network members about the unique advantages independent flooring dealers have today—even amid a challenging economic landscape. “The one constant is the people and the relationships—that never changes,” Randolph told members.
He cited FCA Network’s peer-to-peer sessions as an example of what separates a smaller group from the larger ones. “Peer sessions—that’s the benefit of being in a group like this,” he said. “You help each other, you challenge each other.”
Randolph touched on other key points:
Consolidation. “The big players are getting bigger; they are creating price pressure on all of us,” Randolph said. “Where does that leave the independent flooring retailer? Compared with large, multi-store chains you can deliver a level of service the big guys can’t match.” Randolph said the small dealer is more agile and quicker to respond to customers than the bigger dealers.
Control what you’re able to control. “We can’t control inflation or global conflicts, but we can control what we sell to consumers, what our margins are. Margin is more important than ever today. For every customer that walks in the door, how we maximize that ticket [is key]. Target the right product for the customer and don’t be tempted to race to the bottom. Don’t fall into that pressure.”
Consumers have not gone into hiding. Despite the uncertainty in the market today, consumers are still spending; however, they are being more selective and can be more demanding before making a purchase. “This is where you as independent retailers can win,” he said. “While consumers trust the flooring brands you sell, they trust you— the independent retailer—even more.”
Randolph added that consumer demand hasn’t disappeared. “The home is still the most valuable investment people will make in their lives.”
Grow your digital presence. Customers are shopping long before they walk into your showroom. “Midway through their shopping journey is when they first walk in your door. Make it easy for customers to choose your store. Highlight the brands you sell. Differentiate your business.” Randolph said. “Mohawk is driving customers to your stores through digital tools. That digital-to-in-store [dynamic] is critical to closing the loop.”
Eye on AI. “Your customers are already using AI to research product and to consider their options. How can AI help you? It allows you to respond to customers faster, improve your marketing, protect your margins; it can free up your time to focus on what really matters, and that is the relationship you have with your associates and with your customers. The retailers who win in the next chapter will embrace the new digital tools.”
Add-on sales. Randolph advised FCA Network dealers to emphasize additional purchases, such as bundling a rug with a hard surface purchase. “It’s a time-saver for the customer, it’s an add-on sale for you and it is a margin enhancer. It gives you a touch point with the customer because when they have a need for a rug in another room, as they will, they will think of you.” Accessories, including stair treads, is another example of a smart add-on sale.
Opportunity beckons. In the next five to 10 years we will see the largest transfer of wealth as baby boomers start passing their inheritance to their kids and grandkids. “Are we prepared to capture that business?” Randolph asked.
