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DISTRIBUTION - protagonists

::: Size (often) doesn’t matter
FROM THE USA of Giovanni Carlini
-----------------------------------------------------------

Let’s “re-dimension” the myth of the need for gigantic showrooms and big spaces that offer customers the pleasure of seeing a lot in little time. But there’s a secret ...



It’s not the (amount of) space that makes the showroom, it’s the method used to organize it.
Expressed in this way, the concept sounds easy, but it isn’t. At the same time, it lets smaller stores organize themselves in nontraditional ways, particularly in towns or cities.
Most people believe that the showroom as a sales method requires big spaces and parking lots, but this isn’t necessarily true. How do you go about organizing a little showroom in a city?

::: The little showroom
Our inspiration comes from Fort Collins (Colorado), where Jim Bennet sells parquet and ceramic floors, moquette and venetian blinds (www.newcreationflooring.
com) in the showroom he set up in center-city that puts every inch of his 100 sq m of display space (plus 70 for warehouse and offices) to best advantage: Here’s how he did it:
• The store’s floor alternates parquet, ceramics and moquette. The changing materials beneath your feet make you want to decorate your own home or office the same way;
• The walls are hung with the samples provided by producers. Nothing new in itself, but Jim’s bright idea was to also use display columns for both tiles and parquet that “go beyond the usual” that anyone can see on other dealer’s walls. This lets the store owner create his own “theme” route that the visitor follows through the store, one chromatic shock after the next;
• This limited amount of space hosts as many as 4 customer welcome/assistance points, each with chairs, a desk and support material. These 4 “listening” points are staffed by Jim himself, a professional salesman, a designer, and an office manager, who although is more of an expert in logistics can answer any other question a customer might have;
• The end of the display space features a series of panels bearing times in every shape, color, pattern and size you can imagine that resembles an harlequin costume;
• Visitor’s finish their “tour” by passing by 2 administrative secretaries usually not involved in sales but trained to listen carefully and staff the cash register counters.

::: A word with the star of the show(room)…
Why, with all the space at your disposal, did you decide to organize your showroom in this way and put every millimeter to use?
Jim Bennet: Shall we say I just did it to be different? I live in a very competitive surroundings. There’s another showroom just down the road that sells parquet, ceramics and moquette, and they’re a lot bigger than we are, but they’re also a bit “stationary” in their approach to the business. I’m sure that if you asked to interview them they’ll give you a nonanswer three days later, meaning that “we don’t have the resources to go through an interview”. If this is my habitat, how do I emerge? Space costs nothing here in Colorado; everybody’s got as much as they want. But in such as “rigid” market as this, you have to pull the rug out from under your competitors’ feet and beat them at their own game with totally new and completely different methods if you want to emerge. That’s where creative fantasy comes in.
Organize yourself better in less space, at lower costs, with more attentive service more closely attuned to your customer, faster, and with a wider offer concentrated in a single store. That’s how I think I do 75% business than the others.
Smaller is beautiful? I don’t know if that’s the right definition of my showroom, but small certainly means faster customer service and better solutions proposed at costs that are obviously lower than other solutions.
How did I do it? Easy! I just observed how elephant-like the others are and organized myself to be different, even if I stay in the same merchandise category.

In a word, you had the advantage of being surrounding by an oldfashioned class of store owners from which it easy to emerge with a bit of fantasy?
Jim Bennet: Just a moment there: you can say that my colleagues are sitting on their laurels now because I came along and made my showroom, but before, they were the market and the standard was set by what they represented. Currently I have only one real competitor in this area: a parquet installer who eliminated all his costs - no sales outlet or showroom - and makes all his contacts by Internet. That’s all he’s got, a website, and that’s where he gets his requests, sends out his estimates, and sells his wood floors. We don’t get in each other’s way. He serves the suburbs of Fort Collins, the people who have trouble making it into the city center, which is where I do my business.

What’s the one thing missing from your showroom?
Jim Bennet: I would have liked my showroom to concentrate progressively on just one interior - we could define it as a “funnel” - that would mean channeling the visitor’s path into a final part, which is what you see down there at the end, that composition of colored marble…

Why isn’t this possible?
Jim Bennet: For ergonomic/traffic circulation problems: the lines would be too long for a commercial context. People would get tired and leave. A funnel dimension might be OK for a museum because the people know they have to pay a price to see what’s on hand.

::: A team of professionals
How many visitors do you get each day?
Jim Bennet: We have 20 contacts a day with couples that count, with questions and negotiations on 9 - 12 occasions; I mean, we sit down at the customer reception desks ten times a day. The fact that it takes 4 of us to deal with customers is more indicative of the different types of specialization we each offer than the actual number of negotiations, and this means that sometimes all four of us get involved in the same analysis, but to tell you the truth, customers just “melt with gratitude” when they see themselves being so attentively served by a team of professionals.

That all sounds wonderful, but what about your costs?
Jim Bennet: We’re not rich and I doubt we ever will be, but we lead pretty decent lives. We make sales for 3 million dollars a year, and there’s six of us here. We’ve shown a trend of 6-7% annual growth over the past 5 years.

How much are your competitors growing?
Jim Bennet: With the exception of that parquet installer who works through Internet, the other dealers are growing at 1-2% a year, and some are even showing slight losses. I can say that we’re growing and they’re standing still.
I wouldn’t even be surprised if the wood floor market even thinned out in the near future and 3-4 operators that are currently too slow and not qualified enough were forced out of the business.

What would be your advice to someone just starting out in the indoor flooring and finishing material retail business today?
Jim Bennet: I’d definitely advise setting up a showroom, no doubt about that. But opening up alone is not enough; you’ve got to give your place your own personal style, not your architect’s, and just the opposite of your nearest competitor’s style. You need to find a way to communicate with your customers directly and simply, and that means being original.
If you succeed in doing all this, customers are going to remember you; otherwise, whatever you show in your store will only be filed away as “….seen it already somewhere else”.
I’ve been working in the market for 27 years now, but before I used a “normal” sales outlet designed by an architect. I’ve calculated that the 4 years of life of this showroom and its original formula have given me 39% more sales and 54% contacts than the traditional model I used before.

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