INNOVATIVEIDEAS THAT
BREAK THE MOLD
THE PANEL
• Moderator: Evan Hackel, CFEPresident, Ingage Consulting
• Panelists:– Corey DeNicola, CEO, Mainstream Fashions Franchising
– Geoff Goodman, President, Orange Leaf Frozen Yogurt
– Luke Stanton, COO, ProTradeNet (Dwyer Group)
– Eric Bernstein, President, ProSource Wholesale Floorcoverings
QUESTIONS
THE CHALLENGEWhat is the challenge or issue that confronted your system?
THOUGHT PROCESSHow did your system think through the goal of solving the problem?
THE SOLUTIONWhat changes did you ultimately decide to implement? Why? How?
EVALUATIONWas the solution ultimately successful? Were your goals met?
KEY TAKEAWAYS
Breaking the Mold by:
getting franchisees involved in
the solution
breaking through the
noise
not being afraid of going
back to the drawing board
expanding your vision
Corey DeNicolaCEO, Mainstream Fashions Franchising
THE CHALLENGE
TEAMWORK MENTORING COMMUNITY
THOUGHT PROCESS
THE TEAMHOME OFFICE STAFF
• Franchise Support• Marketing• Operations
FRANCHISE ADVISORYCOUNCIL
IDEAS
Regional Groups
Networking Group by number of units
Mentoring Program
Networking GroupsBy sales volume
Monthly meetings with all franchisees
THE SOLUTION:REGIONAL NETWORKING GROUPS
SET REGIONS ANDRECRUITED LEADERS
TRAINING FOR THE GROUP LEADERS
LAUNCHED AT THEANNUAL CONVENTION
THE SOLUTION:REGIONAL NETWORKING GROUPS
Typical RNG meeting agenda:– Goal report (from goal set at their previous meeting)– Discussion topic– On the floor (one person shares problem, others brainstorm
solutions)– For next meeting:
• Agree on the discussion topic• Decide who will be “on the floor”• Set goal to achieve by next meeting
EVALUATION
TEAMWORK MENTORING
COMMUNITY
SUCCESS
COMMUNICATION
Geoff GoodmanPresident, Orange Leaf Frozen Yogurt
THE CHALLENGE
THOUGHT PROCESS
Internal Culture Definition
External Brand Communication
THE SOLUTION
Live the Mission of “Being Remarkable”• Be Noticeably or conspicuously different,
worthy of notice or attention• Bring marketing to the front line operations• Activate the voice of the system
“Advertising is the tax you pay for being unremarkable.”
-Robert Stephens, The Geek Squad
THE SOLUTION:REMARKABLE ENGAGEMENT
BREAKTHROUGH THE CLUTTER
“SHARE WORTHY”CONTENT
LEVERAGE TECHNOLOGY
AMPLIFY MESSAGE
THE SOLUTION:ORANGE UNICORN “SPOKESTHINGIE”
THE SOLUTION:INTERACTIVE AUGMENTED REALITY
EVALUATION:ORANGE UNICORN AR APP UPDATE
• 9,764 visits to the Orange Unicorn page in one month
• 867 visits to the Orange Unicorn AR page
• Orange Unicorn has been downloaded 1,149 in 30 days
• Average time spent on Orange Unicorn AR app is 3:36
• 3,860 minutes of occupied time that Mom or Dad gets to take a time-out!
PROJECT “FLYING ORANGE UNICORN”
EVALUATION:PROJECT “FLYING ORANGE UNICORN”
• 398 Total Press Mentions
• 206,406,549 Total Reach
• $407,681.78 Total Publicity Value
Luke StantonCOO, ProTradeNet
THE CHALLENGE
PURCHASING DECENTRALIZED
VENDOR LISTS IN EXCEL NO UNIFIED BUYING RELATIONSHIPS
NO AGREEMENTS INEFFICIENT
THOUGHT PROCESS
EXPERIMENT FAIL FORWARD IMPROVE
THE SOLUTION: SYSTEMS AND PROCESSES
ONLINE PLATFORM STAFFING SYSTEMS AND PROCESSES
AUTOMATION OF REBATES
EVALUATION
EVALUATION:VENDORS ARE HAPPY
BETTER SPONSORSHIPS STRATEGIC ENGAGEMENT SALES GROWTH
EVALUATION: FRANCHISEES ARE HAPPY
SAVINGS & REBATES TIME SAVINGS SINGLE SOURCE OF INFORMATION
EVALUATION: FRANCHISOR &TRADING PARTNERS ARE HAPPY
PROFIT CENTER ADDS VALUE TO EXISTING & NEW FRANCHISEES, &
TRADING PARTNERS
NEW UNIT SALES ENCOURAGES LOYALTY
Eric BernsteinPresident, ProSource Wholesale Floorcoverings
THE CHALLENGE
• Established & unique
• 125,000 active trade pros
• Spend < 1% on marketing
• 6X year purchase cycle
• Low cost & high touch
• Relationships = $1.4M year
Our Model
We’re in a location you can’t find
and a business you’ve never seen
advertised…
THE CHALLENGE
• The $26B Industry with 18,000 Independents
THE CHALLENGE
• A moment of truthSYSTEM SALES
THE CHALLENGE
Will the industry return us to…
Per unit sales of $3.5M?
Per unit profitability of 3.2%?
THOUGHT PROCESS:THE REARVIEW MIRROR IN 2016
Stay the Course
• Industry < $18B
• Independents < 12,000
• Industry Growth Rate; 2.0%
Innovate; New Category
• Existing customers; 45% purchased
• New Customers; 32%
• Customer Annual Sales; +3.7X
Avg. SR Sales
$4.7M
+10% CAGR
Avg. SR Sales
$3.7M
+5% CAGR
THE SOLUTION
Help ProSourceshowrooms increase
sales, profit and cash flow
Leverage current• SR floor space
• Trade-Pro customer base
• Sales staff
Projected Annual Sales• $700K - $1M
Projected Annual net profit• $66K - $120K
THE SOLUTION:INVESTMENT
Franchisee
• $75,000; buildout &
display
• $55,000; annual staffing
• 800-1,200 Sq. Ft.
• 4 month buildout
Franchisor
• $2.0M dev., pilot & Op.
funding
• $2.8M Financing support
• Staffing Infrastructure
• Supplier Agreements
THE SOLUTION:TURMOIL, ROADBLOCKS, CHALLENGES
Pilot Philosophy; System Sales, Profitability & Scalability
Franchise Agreement; BOD & Advisory Council
Selling Space; my lease is up for renewal
Risk Adversity; I’m making enough (or not enough) $$$
New vendors; you’re irritating our existing dealer network
Existing vendors; you’re removing what?
THE SOLUTION
THE SOLUTION
EVALUATIONSystem Sales (in M)
$300
$350
$400
$450
$500
$550
$600
$650
FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
$1,083,000
$812,000
$667,000
$593,000
$446,000
Year 5
Year 4
Year 3
Year 2
Year 1
Avg. SR Cabinet Sales
Flooring Sales Cabinet Sales
KEY TAKEAWAYS
Breaking the Mold by:
getting franchisees involved in
the solution
breaking through the
noise
not being afraid of going
back to the drawing board
expanding your vision
INNOVATIVEIDEAS THAT
BREAK THE MOLD