
By Chuck Bode
You may be familiar with the quote by Benjamin Franklin, said to have been uttered during the signing of the Declaration of Independence, “We must all hang together, or most assuredly we shall hang separately.”
This quote was meant to rally the reluctant colonies to action. Similarly, herding flooring contractors to move in one direction is like herding cats, though a coordinated effort by a group of like-minded contract dealers can accomplish more than a lone wolf.
The question for today is, why do commercial buying co-ops exist, and do they provide a meaningful purpose for their existence? I was chairman of the board of the Starnet Commercial buying co-ops from 2018 to 2024, so I was able to see the benefits of participating. Am I biased? Not really. The thoughts expressed here are what I truly believe!
Every year, our surveys showed peer networking was the most valuable take-home from the meetings. Some prospective dealers would ask, why would I want to hang out with my competitors? I have met entrepreneurs who believe they are the smartest guy in the room. I can assure you this is not always true. Your competition is more like you than you think.
Some of my best buddies from Starnet are huge contractors I’ve gotten to know over many years. Ninety-five percent of the time, they will gladly offer ideas about how to solve any problem plaguing you, not to mention most entrepreneur risk-takers are generally hilarious with big personalities.
Another big benefit of joining a buying group is getting to know the top management of your most important vendors at least twice a year, in person. The co-op attempts to get as many members as possible on board supporting its key vendors. And, by the way, did anybody mention there is a co-op rebate that goes along with these purchases?
In this day of continued consolidation, being part of a commercial flooring co-op allows independent members to work together and be competitive in a bid to do multi-city work for a client who is looking for one point of contact for a network of new office branches or restaurants. And these can be valuable opportunities for getting a foot in the door.
Nurturing the next generation of flooring professionals is another opportunity membership offers, and co-ops have programs to assist with this. Every business owner, regardless of age or proximity to retirement, should be cultivating the younger generation. It’s not only the responsible thing to do but also the right thing to do.
Finally, is anybody but me sick and tired of hearing about AI? The role it will play in our industry is evolving as we speak. Another benefit the co-op offers is keeping members up to date with the latest software and technology, and training members on how to actually use it. Don’t get me wrong: I love AI. In my latest medical journey, I trust ChatGPT more than my doctors. n
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