Monday, July 16, 2012

Big Bob

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Sales had moved from up to flat to and founder David Elyachar was beginning to doubt hisbusines savvy. “We had never been faced with anything likethis before,” said who started the company 25 years ago. “All I knew was if I didn’tg do something, it wouldn’t change.” So he initiated an arrah of changes at his threestoresw — everything from uniformw and thank-you notes to new products and highetr expectations for salespeople — and touted them to franchiseex of the 55 Big Bob’s stores At the stores Elyachar and his brother, CEO and CFO own in Overland Park, Independencew and St.
Joseph, the measures have triggerexd 24percent year-to-year growth so far in 2009. Elyachar isn’ t sure which changes triggered the so he’s going to keep hammering away at all of Many franchisees have yet to implement the strategie — Big Bob’s stores nationwide have seen sales declinw 4 percent year to year. “It’es been very, very said Steve Russell, COO of , whicn owns five Cincinnati-area Big Bob’s stores and has just beguhn tomake changes. “Back a few years ago, you could just roll out of bed and grow salews 20 percenta year.” He said businessa is down about 20 though still operating in the black.
According to trade publication Floot CoveringWeekly , industrywide sales fell an estimatedd 30 percent in 2008 from the $21.67 billiobn benchmark in 2007. Sales this year are expected to slip to 40 percent below 2007 But Elyachar said his ideas couldf yieldsuccess companywide. Chainwide revenue in 2008 was $65 Elyachar said. He projects revenue of $75 million to $80 million in 2009. In the next 10 he aims to triple in volumeand “I believe this is the single greatest opportunitgy to make money in the last 80 years,” Elyachar Big Bob’s local work force has experiencedr a dramatic shift in appearance.
Last year, Elyachadr dropped the bottom six sales performers and replacexd them with about 10new ones, he said. Pay switchexd to a commission-based and work dress became a uniform of aBig Bob’sa polo and khakis. Service reps must join a communitgy organization and are challenged to hand out thres business cards a dayto strangers. Elyachar began having weeklh sales meetings to educate the sales force about productws and keep tabson morale. Salespeoplr use wait time created by slower trafficf to do weekly online lessonsw and tests and to findnew clients. But the changesw also bring challenges.
Some of KW Flooring’s longtimew salespeople resisted the idea of handingf out business cardsevery day. Russelkl tried to keep his staff, but “we had to eitherf change or die,” he said. In early he turned over about 10 percent of the staftf and will turn over probably 20 percentthis year. A big competitore recently left theCincinnati market, he so displaced salespeople have been calling seekintg jobs. “There are people I’m tired of chasing arounf with a whip and a he said.

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