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THE BOTTOM LINE
FLOORED BY HIGH-PROFIT$500 million a year selling name brand flooring products.
The home improvement phenomenon has reached an all-time high, with product sales topping $212 billion in recent years and analysts predicting a steady growth of 5.2 percent annually. These statistics are from the Home Improvement Research Institute (www.hiri.org). To capture an increasing share of this booming industry, ProSource Wholesale Floorcoverings, one of the largest professionals-only flooring wholesalers in North America with more than 175,000 members, recently announced expansion plans through a limited number of exclusive franchise territories. “We are the trade professional’s showroom serving a unique and growing niche, which makes our concept in extremely high demand,” said David Kraeling, president of ProSource. “Our company plans call for 20 new showrooms each year for the next five years.” Developed by the flooring industry’s premier cooperative CCA Global Partners, ProSource opened its first showroom in St. Louis, Missouri, in 1990. Within two years, ProSource went nationwide with 30 additional showrooms. After only seven years, ProSource became one of the top five largest wholesale distributors of floor coverings in the United States. Drawing on the power of CCA Global, ProSource offers a wide selection of flooring from more than 110 manufacturers, including regional brands, private-label offerings and exclusive imports. The division generates an estimated $500 million in annual sales and is experiencing double-digit growth. Once available only to members of CCA Global Partners, ProSource opened its franchise opportunity to all qualified candidates this year. Exclusive territories are being offered in California, the District of Columbia, Florida, Georgia, Indiana, Iowa, Louisiana, Massachu-setts, Maine, Michigan, Missouri, New Hamp-shire, New Jersey, Pennsylvania, Tenne-ssee, Texas and Wisconsin. As sales of new and existing homes increase, an estimated 26 million homeowners initiate improvement projects amounting to more than $135 billion annually (Source: NAHB Economics). Some construction industry forecasts predict home improvement spending will soon rival new home construction spending. Also on the rise is commercial development with new retail stores, hotels and multi-family housing cropping up in metropolitan and rural markets. |
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