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.org.

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% 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.

Michelle Hamilton, the second place bath design winner, chose a theme of "The Waves of the Ocean and the Sand of the Beaches." These elements inspired the designer to incorporate freeform shapes in the shower and counter. Several sustainable products were incorporated to promote a healthy living environment and a space that reflects the Fosters’ love of nature. The design uses an open floor plan with an organic, natural feel. Sand tones are accented by vibrant green.


2nd Place Bathroom Design Competition
Michelle Hamilton
Joliet Junior College, Joliet, IL
Seaweed panels and mesquite wood cabinetry provide a unique sustainable material for the bathroom. The designer used waves throughout the bathroom to reflect the flow of the water and sand, as well as to create movement in design. The designer was also conscious of the height difference between the Fosters and created the counter area to reflect Dean’s height and an area for Sarah to put on her make-up in comfort.

The shower has a bench with a handheld showerhead to accommodate a person who needs to sit, but it also offers a rain showerhead in the ceiling to provide a terrific showering experience. Grab bars are located throughout the shower and tub area, blending into the design through the use of a natural pebble border along the to and bottom edges. Storage abounds in this uniquely designed bathroom. The design of the bathroom flows like the ocean, yet the colors reflect the surrounding landscape.

FCA's Olga Robertson welcomed new members
Carla Roden, left, and Jeff and Jeniffer Teller with
the group's code of ethics.
CHICAGO—Olga Robertson, FCA Network president and CEO, kicked off the group’s 2009 annual convention by welcoming an "astounding" turnout of 84%: "This year we’re heading back to the basics and looking at alternative approaches to increase your business," she explained. "Education is key; it’s the common thread among successful people who strive to be better. You understand that and are extremely smart to be here."

She proceeded to compliment the group—comprised of 50 members and 58 storefronts— noting FCA’s ’08 success stories, including the addition of seven members, a 3% increase in the sales of better goods, a decline of only 5% in net purchases (compared to the industry’s 20% average), an increase in several members’ businesses and continued strength in its vendor relations.

"FCA is different because it’s a successful retailer helping other retailers; we experience the same things our members do," Robertson explained.

Robert Hill, chairman of FCA Network, agreed, noting the membership’s unique identity as a low-cost buying group that resists the "one size fits all" approach has truly been a differentiator. And members said he could not be more correct.

Al and Tony Capaul of Capaul’s Floor Covering in Tomah, Wis., members for eight years, said it’s the small things that add up— claims, products, pricing, marketing—and this is where the group helps. "It’s definitely been a worthwhile membership for us."

Expanding a bit on his experiences, Frank Marotta of The Carpet Co. in Chesterfield, Ohio, said, "Being part of a group gives you so much more in this business— networking, great pricing on fantastic products, value, the list goes on. What really separates Olga and Bob [FCA], however, are their practicality, pricing, partnership and patience."

Bob Johnson of Liberty Floor & Window Coverings in Griffith, Ind., continued, pointing out rebates, cost to dealers and private labeling as key initiatives helping members survive and thrive. However, he said, "It’s the group’s delivery on promises that truly sets it apart."

In keeping with its above-average status, Hill told attendees when looking ahead expect the best but prepare for the worst. "Last year was tough, prepare for ’09 to be tougher with recovery by 2010."

To help members follow this strategy and be successful, Hill noted several suggestions:

• Internet—the importance of having a Web presence,
• In-store signage, promotions, events, etc.,
• Keep experienced people,
• Set higher expectations,
• Conduct more training— close sales at higher price points,
• Study competitor’s products and practices,
• Work to make less mistakes,
• Strive to raise margins 5%,
• Introduce and showcase more new products.

Along with all of these proposals for increased business, Hill and Robertson noted attitude as a key factor through it all. "This is the time for optimism," they said, "and after this year we’re in for another boom period."

And Robertson explained FCA Network will be there to help the whole way through. "Last year everyone did a lot of cutting," she said. "In ’09 they need to realize there are still opportunities out there and not operate out of fear but go find the customer." She advised members to avoid negative press, stay focused on business and watch cash flow.

"Our members are good, salt-of-the-earth people, open to new ideas and eager to learn new things, hard working, involved in their communities; they’re living the American dream and we’re here to help them in some small way—to take some of the burden off their shoulders and help them prosper."

A girls room is featured in a model
home in the Stewart Ridge development
in Plainfield, IL, designed by Sherry
Theos. The bed skirt was made by
stapling actual grass skirts to the
bed frame.
From a DVD playing 'Animal Planet' to a blanket draped over a sofa, it's all about making you feel at home!
Model homes can look worlds apart but broadcast the same message: You're comfortable here -- you're home.

Take for instance, the model of a suburban house where the master suite, framed in silk curtains, has a soft velour sofa facing a plasma TV and coffee bar with a nearby sky lit spa shower. It invites you to make it your own haven. Meanwhile, a downtown loft with an orange lacquer media center, sleek white mock leather chair and earthy accents says you can go clubbing all night then come home to your Zen refuge.

These meticulously detailed models sit on opposite ends of the interiors spectrum but it's by design that they project the same sense of hearth and home to their different niche markets. After all, their decorators and developers spend lots of time and money to set up spaces that will stir the irresistible urge in a would-be buyer to say, "I belong here."

"Models are marketing tools," explained Ryan McNaughton, vice president of James McNaughton Builders of Hinsdale, who has long used them. "It lets people see, touch and feel what we're all about."


A view of a fireplace in a family room
designed by Sherry Theos for a model
home is featured in the Stewart Ridge
development in Plainfield, IL.
David Pierini/Chicago Tribune/MCT
"But we're only as good as our interior designer," he added. "She helps us walk that fine line between broad mass appeal and reaching our target niche with the right decisions about colors, furniture and accessories."

Indeed, the right color, chair or window treatment can move a consumer to plunge into the biggest investment of their life, said Rohit Deshpande, a professor of marketing at Harvard Business School.

"A color can change their thinking from 'Oh my God, what a huge mortgage' to 'This house is so comfortable, I feel like I already live here,' " he said. "That's why a good seller tries to target all five senses to envelop the customer with the message."

After all, buying a house is more than toting up the sum of its rooms. It's an emotional decision. "A house is an extension of the person and their family," Deshpande said. "It's their identity."

The right model can conjure the emotions and mental pictures that help a builder tap into a buyer's needs, wants and dreams.

That's why for six months, Sherry Theos and Rich Cannavino pored over plans, fabrics, paint colors, furnishings and fixtures for a model with a "please-let-me-hide-away" master suite. Theos is a decorator with FCA Design Center in Naperville, while Cannavino is chief executive of Naperville-based St. Thomas Homes, developer of Stewart Ridge in Plainfield.

Last January, they sat down with blueprints for the 5,800-square-foot, $799,000 house aimed at couples 25 to 50 years old, with children and perhaps a parent in residence. Theos suggested that the builder add windows in the family room for more natural light and extra space in the master suite for the sitting area. In February, she ordered the furniture; in March the lighting, and a month later, appliances and granite for countertops. By late May, with painting complete and flooring laid, the furniture arrived, from sofas to color-coordinated hand towels and a pink iPod for the daughter's room.

With fingerprint-forgiving shades of darker paint and already scuffed hardwood floors, "We set it up so the buyer would think they could move right in and stay until their children were grown," Theos said of the interior that cost about $87,000.

The media center in the family room is alluring to adults and children. A parent cooking in the kitchen can see the computer screen to make sure their child is doing homework, not surfing the Web. Meanwhile, the DVD captivates children. "We have it playing Animal Planet," Theos said. "The kids get locked into it."

They're also drawn into the beach fantasy that is the children's rooms. The daughter's bed has a grass skirt as dust ruffle, beach towel bedspread and a good-for-any-fantasy rhinestone tiara on the yellow desk.

The kitchen can kindle romance for the grown-ups. Glittery tile on the swoop above the stove and dim lighting under the cabinets give off a warm ambience. "Buyers can imagine cooking, kissing, enjoying life," said Theos. In the master suite, she added, "The owners can hide away for days."

They can also feel socially responsible as they look around at their recycled carpet, glass tiles and roofing. The appliances, lighting and windows meet federal energy efficiency guidelines, while the geothermal heating and cooling system saves 30 to 50 percent on energy bills. Meanwhile, low-flow faucets and landscaping that features native plants cuts water use, according to St. Thomas Homes.

At Stonebridge Woods in Homer Glen, the 2,900-square-foot, townhouses, which are priced at about $465,000, target empty-nesters, retirees and single-parent families.

"They're people of substance who already have furniture," said decorator Darlene Kadar of Darvin Furniture in Orland Park. "We want them to realize they can use it here; just think outside the box."

To illustrate that, she put a big sofa, which most people have, in the living room and a large mirror rather than a TV over the fireplace. In the master suite, she chose a king rather than the queen-size bed often used to make rooms appear bigger. "Nine out of 10 people have kings and we want to meet their needs," Kadar explained.

While she went for a transitional style not tied to any time period, Kadar strove to make the model memorable with details like an oval cocktail table that once was a clock for the office. "It's a fun, unique piece that excites the senses so people will remember what they've seen," she said.

The 3,000-square-foot, four-bedroom model for McNaughton's Greenleaf subdivision in Westmont is geared for the empty-nester from Hinsdale or Clarendon Hills. It says, "OK, you're sizing down but you'll have all the room you need for guests and entertaining," explained decorator Nancy Plzak of Plzak Interiors in Indian Head Park.

Mirrors in the entry and living room bring in more light that accentuates the volume ceilings. In the small den, she saves space by using a semi-circular hunt desk, graduated shelves that provide storage and plantation shutters.

A totally different scene is set in the model by Kappan Shipman of Habitar Design at the Opera Lofts in Old Town. Once the Lyric Opera's warehouse and design center, the old building is being renovated by LOACQ LLC into 93 loft condominiums with brick walls, exposed ducts and 13- to 30-foot concrete ceilings. It sits near elevated train tracks, the Stevenson Expressway, factories and the half-empty Harold Ickes public housing project.

Against the industrial cool of the structure, Shipman contrasts an organically warm but modern décor for the $429,000 two-bedroom, two-bath duplex model with a den. Furnishings in "a cool palette of gray are accentuated by a pop of pumpkin grounded by chocolate-stained wood floors and tables," she said. Softly-textured accessories, such as shag wool rugs, chenille bedspreads, silky throw pillows, are ensconced with starfish, stones and branches that recall land and sea.

"This unit speaks to the urban pioneer who wants to try something different," she said. "It's playful yet sophisticated."

But for all the edginess, Shipman explained, it carries the most traditional marketing message: "This is a peaceful place for you to come home to."

Copyright © 2009, Chicago Tribune

Olga Robertson, president and CEO
of Shorewood-based FCA Network,
was recently named one of the 20
most influential women in the flooring
industry by Floor Covering News.
John Patsch/Staff Photographer Shorewood, Ill. – Olga Robertson urges young people looking for a career to check out the flooring business. It's worked well for her.

Robertson, president and chief executive officer of the Shorewood-based FCA Network, was recently named one of the 20 most influential women in the industry by Floor Covering News.

FCA Network is a buying group for 60 stores around the United States, including the affiliated Floor Covering Associates (FCA) stores, which also are based out of Shorewood.

Robertson oversees merchandise selection for the buying group. She visits with flooring manufacturers and at times consults on product development. And, she's always on the lookout for new talent.

"We have a lot of very successful sales people - women in particular - who are making over $60,000 a year," she said. "It's a very good profession."

FCA is celebrating its 30th year in business, and Robertson joined the company when it was little more than a year old.

She was hired by owner and founder Robert Hill, when FCA had about a half-dozen employees and one store - just 200 yards away from the current Shorewood location on Illinois 59.

We grew our business with repeat and referral customers," Robertson said. "We monitor our customers and where they come from. About 75 percent of our customers are repeat and referral customers."

Today FCA has seven locations in the Chicago area, including a flagship design and furniture store in Naperville.

FCA Network was created 10 years ago to pool FCA's resources with those of other independent stores and increase their collective buying power.

Stores in the group operate under their own names. Most member stores are in the Midwest, but others are as far away as Albuquerque, N.M., and Dover, N.J.

Robertson describes herself as "a pretty tough negotiator," which has served her well in an industry dominated by men. "I know the top executives at the major companies, and I deal with them directly," she said.

And, she knows the value of young talent, noting the opportunity Hill gave her at FCA 29 years ago.

"I was fortunate in that I started at the bottom, and I worked my way up," she said. "There were a lot of opportunities to prove myself."

Okon, B. (2006, November). Flooring group honors local woman. Retrieved November 5, 2006 from the World Wide Web: http://www.suburbanchicagonews.com/heraldnews/business