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You are
a busy guy! You were just appointed to the position of
Chairman of the WFCA
(World Floor Covering Association). You also own Floor Covering
Associates and FCA
Network,
and are on the Board of the NFA (National Floorcovering
Alliance). Tell
us how you think Associations can be of help to both the manufacturers and
retailers and
what
inspired you to accept the position of Chairman of the WFCA.
The WFCA is
virtually the only place where all segments of our industry
can come
together -
retailers, manufacturers, distributors, installers and
members of the related
service
industries-for information and ideas that will create a
stronger business future. I
took on the
job of Chairman of the WFCA because I believe that our
industry is at a
crossroads, and needs fresh ideas and resources in
order to flourish in the difficult times
ahead.
What
are the benefits of WFCA membership since it is not a local
association?
To begin
with-a surprising and little-known fact: For the low
membership cost of
$250.00 per
year, members are immediately eligible to receive trade
scholarships for their
employees
of up to $500.00 per year. This is the only membership I
know of where a
single benefit alone exceeds the annual membership fee.
Our members
also benefit from access to unbiased information on
everything from new
installation techniques and creative problem-solving, to the
latest consumer behavior and
marketing
research. In addition, our certification program enables
members who qualify
by taking a
test to call themselves WFCA-certified flooring experts,
thus giving them a
distinction
in the marketplace. For a full list of benefits, take a look
at www.wfca.orq.
What
are your goals for the WFCA during your tenure as Chairman,
and how will you
make a difference?
As you
know, over the past five years the specialty floor covering
retailer has lost ground
to the
national home center chains. Home centers reportedly sell
40%o of all floor
covering
today. I hope to make a difference by encouraging dealers to
get their
salespeople to increase their knowledge and
professionalism by taking the WFCA test to
become qualified as "Certified Flooring Experts" (CFE's). The
Chicago
Floor Covering
Association
is already taking the lead in this. I believe that only by
improving our
professionalism at every level will we be able to
successfully differentiate ourselves from
the home
centers and bring customers to our stores.
You
started FCA as a single operation in the middle of a
cornfield and have grown into a
hugely successful retailer with multiple store locations. Did you
anticipate this
happening
when you first opened?
Frankly,
when I started FCA, my goal was to make a living. Looking
back today, I realize
that our
growth has come from looking for opportunities to create new
businesses, and
from moving
quickly when we perceive there is a niche for us to fill.
What is your basic philosophy of conducting business?
That's an
easy question - take care of your customer, make a profit
and pay your bills on
time. When
you take care of your customer, she will take care of you.
When you make a
profit, you
can pay your bills on time. When you pay your bills on time,
your suppliers
will also
take care of you. Most importantly, when you make a profit,
you can afford to
take care
of your good employees and keep them happy and productive.
The
NFA is a buying group of the top 33 largest retailers in the
country - describe this
group.
This is an
interesting organization. We meet only three times a year.
At least one of
those
meetings is devoted to roundtable meetings with the senior
executives of all of the
major
manufacturers in the industry. We also learn a lot from each
other. We do a "best
practices"
session once a year, and it is just incredible how much you
can learn from
other top
retailers. We aren't the largest dealers in the country by
accident.
You are a board member of that group and also started FCA
Network. What makes FCA Network different from other buying
groups?
The FCA
Network is the only buying group that was started by a
successful retailer. We
understand
the retail business, and we share what we've learned from
our own experience
about
running a successful business, solving problems and
increasing profitability.
Nobody understands your business better than someone
else who's in the same boat.
And nobody can be more helpful than someone who's actually been there.
FCA Network
is an
unusual buying group model that works. It's a very tightly
knit family. We all help
one
another.
You
also are in Home Furnishings. You started a Home Furnishings
and Design Center
in Naperville a couple of years ago and it seems to be doing great…what
prompted you
getting
into the furniture business and how is it doing?
I have
always enjoyed furniture and design. Actually, my first job
out of college was
working in
a furniture store. I'm fascinated by the challenges in home
furnishings. I've
watched ABC
in New York, Carpets of Dalton, and Nebraska Furniture Mart
to name
three, all
graduate, if you will, from floor covering into home
furnishings. It seemed like
a logical
next step for FCA.
As it's
turned out, we've learned many things that apply to our
floor covering business
from our
design business. Most importantly, designers sell floor
covering differently
from floor
covering salespeople. Designers focus almost exclusively on
such things as
color,
texture, pattern and the "feel" of the material. They don't
sell price or warrantees
or
performance. They sell a "look", a coordinated design where
the entire room, indeed
the entire
house, comes together. All the elements, flooring, lighting,
furniture, window
treatments,
must work to make a unified statement. In other words,
designers really do
sell
fashion. They don't just talk about it. They are light years
ahead of us.
There
seems to be a shift in our industry in the percentage of
hard surface vs. soft surface
sold. What percentage of your business is Hard Surface?
We are
approximately 50% hard surface, and the trend is holding.
How does FCA compete against the big boxes?
Whenever we
go head- to -head, we always win. The problem is that we
don't always
get the
opportunity to compete. The home centers have built an
incredible business
where consumers habitually shop their stores for all
of their home- improvement needs.
Consumers have learned to trust the home centers because they
know what to expect.
They don't have high expectations for service, but they do know they will
get a good
value, and
if there is a problem, the store will take care of it. The
problem we have is
bringing
the consumer into our stores in order to compete. I always
say: "if we can get
them in the
door, we can make the sale."
There seems to be fewer independent floor covering retailers
today than 5 years ago. Is this a sign of things to come?
I've been
looking for statistics to confirm that. The business is
changing and the specialty retailer is definitely at a
disadvantage if he doesn't commit himself to changing with
the times. Joining any one of the fine independent
"merchandising" groups (I prefer this to the term "buying
group," because they all do so much more for the retailer
than just buying.) will be essential. Very few dealers will
be able to survive in the future if they are not committed
to change.
How has the internet changed the floor covering industry?
It is still
too early to tell, and no one I know has solid objective
information on it.. Anecdotally, we think the consumer comes
into the store with more information, but frankly, I think
many also come into the store more confused.
I used to
believe that people would not buy floor covering over the
internet, but I was wrong. Some of the online stores are
doing a terrific job - especially in laminates.
I'm pretty
certain that many consumers, especially younger ones, will
use the internet to find their local dealers. That’s the
reason the WTCA is making such a huge investment in
developing its website, and the reason that every floor
covering store owner should become a member of the
association in order to be identified on line.
The
Chicago Floor
Covering Association appreciates your giving us some of your
extremely limited spare time and feels lucky that the new
Chairman of the WFCA is a member of our organization.
Anything you'd like to add?
I feel
lucky that I stumbled into this business when I graduated
from college. I didn't know it at the time, but it gets into
your blood. It's full of great people and great
challenges-it makes life interesting.
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