Article Number: 2620
Distributor Spotlight: Apollo: Focus, flexibility, fundamentals Goal is to be better, but not necessarily bigger
By Steven Feldman
Fairfield, N.J.—Many floor covering distributors have come and gone over the years in the ultra-competitive metro New York/New Jersey market, but Apollo Distributing has stood the test of time. Talk to third-generation president Keith Slobodien, and he’ll tell you there’s no secret—block and tackle, and the rest will fall into place.
If fundamentals are the backbone of Apollo, then focus and flexibility are the guts. Under Slobodien’s stewardship, Apollo has focused on controlled growth with the flexibility to quickly adapt to market conditions. “When it comes to basic business functions of distribution, we are the benchmark in our marketplace,” Slobodien said. “From placing the order to driver delivery to inventory to offering credit, we do it better than everyone we compete against. Everyone who comes here from other distributors say from our planning process to delivery of goods, we do it better.”
Flexibility is illustrated via Apollo’s sensitivity to changes in the market. “With builder down and residential replacement up, we shift our focus to new display placement, more sales training, better promotions and retail sales incentives,” Slobodien said, adding that Apollo is a very diversified company with involvement in residential, commercial, builder and DIY/ home center.
Apollo’s focus and flexibility led to 7%-8% growth in 2006, which is in line with 2007. Those numbers are fine with Slobodien, who steadfastly refuses to consider geographical expansion. “The goal is to be best distributor inside of my 100-mile radius,” he said. “We are a New York/New Jersey specialist. We don’t want to go the path of many of our competitors that have expanded their territory and in so doing lost focus on their core market. We look to get better, but not necessarily bigger.”
As well, it is rare for Apollo to take on a new line. The preference is to maintain focus on its core brands led by Armstrong and Wilsonart. “Our philosophy is such that we would rather have a more finite group of products in our geography,” Slobodien said. “If I have 12% of a dealer’s business, my goal is to increase that to 14%, and I don’t have to keep adding product lines to do that. We try to have improved services on existing products.”
So from where does Apollo’s growth come? “We are receiving growth on product lines that we may have been carrying for only two or three years, so we are just now hitting our stride,” he said. “In addition, we are gaining market share by doing a better job of getting dealers wood and laminate business.”
However, Slobodien is well aware that a company can grow only so far in a down economy. “Without a recovery, you can only stay ahead of the dogcatcher for so long,” he said. “If every dealer is going to be off 8%-10%, we will not be able to grow at the rate at which we have been.”
History
The entity that is Apollo was born in 1920 with Dave Slobodien, Keith’s grandfather, selling auto parts. Two decades later the business found itself manufacturing weapons during World War II before becoming the first Crosley crystal radio distributor in the country. Then in the 1960s, Apollo got into the TV and appliance business as the Zenith distributor for New York and New Jersey.
Flooring didn’t enter the picture until around 1972, when Apollo purchased the O.F. Ruphrecht Co., the local Congoleum distributor. Why the move from products seemingly bought by every American consumer? “We didn’t see a future in independent distribution for the TV and appliance business,” Slobodien said. “The factories were going to the big guys direct, and it seemed clear to my father that our future would not be in that industry.”
If floor covering was to be future, Apollo was not about to stop with Congoleum. It quickly became the Barwick carpet distributor for metropolitan New York and New Jersey. “At that time, 90% of the carpet being sold in this country was going through independent distribution,” Slobodien said. “Coincidentally, a bunch of Barwick distributors were also TV and appliance distributors who had diversified into floor coverings.”
Unbeknownst to Apollo, the decision that would shape the company forever came in 1982 when it acquired the assets of Empire Carpet, the Armstrong-owned distribution company in New York and New Jersey. “Ironically, we made the deal to get the carpet line,” Slobodien said.
Over the years, Armstrong became Apollo’s largest supplier. In fact, Slobodien credits Armstrong in large part for making it the distributor it is today. “The Armstrong structure forces us to be the best we can be, to keep our expenses in line and be a leading-edge distributor.” Of course, it doesn’t hurt that Armstrong is the best-known brand in the flooring industry, Slobodien said.
“Apollo has been a great partner of Armstrong’s for many years,” said Frank Ready, president and CEO, North American Floor Products, Armstrong. “Their dedication to Armstrong and commitment to excellence has made our relationship special. Nobody does a better job of servicing the New York market.”
If Slobodien has a soft spot for Armstrong, it’s totally understandable. Upon graduating college, he joined the family business as an Armstrong territory manager for New Jersey before adding New York and Connecticut to his responsibilities. “It was a very different business back then,” he said. “Resilient flooring was a significant part of the retail business. Every dealer carried three or four vinyl brands.”
Apollo’s other lines include Wilsonart laminate, BR-III and Eterna hardwood. “Wilsonart is the highest-quality laminate flooring supplier in the country and the industry leader in commercial flooring,” he said. “It is the only laminate flooring company today with a focus on commercial opportunities. Laminate is a great category that is underutilized commercially, and Wilsonart is at the forefront.”
Russ Rogg, director of residential sales, North America, is equally thrilled to have Apollo as one of its distributors. “They have been a consistent top performer among our distributor network since our relationship began in 2001,” he said. “In addition, they are the benchmark for all of our distributors when it comes to commercial successes.”
Slobodien attributes BR-III with helping transition Apollo from being a distributor with wood floors to becoming a wood flooring distributor. “They are the benchmark for exotic wood floors in North America. We are especially fortunate because exotic wood is extremely popular in this part of the country.”
As for Eterna, Slobodien classifies its quality as unmatched in the industry. “This is the one area that may have been wounded a bit in this market. A good part of our Eterna volume was driven by the builder segment. Also, consumers in this economy may find it hard to pay $6 for Canadian maple vs. $5 for American maple.”
Distributor with legs
Why has Apollo succeeded where others have failed? “Some were undercapitalized, like Crockett & Buss,” said Jim Russomano, vice president/general manager, sales. “They were floor covering people in business; we are business people in floor covering.”
Other wholesalers succumbed to consolidation or lost a critical line. Those names would include Eastern Tile (Kentile), Tri-State (Congoleum), Atlantic Building Supply (Azrock) and Turkletaub & Schiffer (Congoleum). Apollo even outlasted staples like Benj. Berman. “I think we did a much better job of transitioning from one generation to the next,” Slobodien said. “I will credit my father with preparing me. He taught me how to run a business, and I added my own style to an already successful enterprise. I’m a little more accessible, more friendly, more open-minded, more aggressive.”
Russomano agreed, noting it all goes back to leadership. “Like Richard, Keith has a tremendous work ethic,” he said. “They know and are intimately familiar with all facets of the business. Most people delegate and don’t understand every facet of the business. Keith delegates and then follows up.”
That fact is apparent to Wilsonart’s Rogg, who attributes the strength of his company’s relationship with Apollo and Apollo’s relationships with its customers, to outstanding leadership within the organization. “Keith is intimately involved with every aspect of the business and has been a driving force for our success with Apollo, but in addition, to the overall day-in and day-out strengths they exhibit.”
Aside from the aforementioned, Slobodien notes Apollo has many more competitive advantages:
Location: Apollo is the only major distributor in the country that can visit any one of its 2,800 customers within a three-hour drive. As well, there are tremendous economies of scale being able to do everything out of one location, Slobodien said.
Training: “We are obsessed with training. We train and retrain. We focus on one product line and then switch to something else. We run certification training for our guys to ensure they are properly qualified to sell our products. We train our own people as well as our customers.”
Stock: Apollo employs state-of-the-art systems to determine inventory levels. “We review inventory and order every day,” Slobodien said.
People: Many of its key employees have been with Apollo for 20 years or longer. “They understand our demand for customer satisfaction.”
Management: Apollo has three managers with years of experience in the field every day. “Our sales management team allows us to be more effective than most of our competitors. We have managers focused on each segment of the business. We probably have a faster management response time than anyone else.”
Looking ahead
There has been much talk regarding the future of independent distribution in response to some manufacturers going direct to select retailers, like the National Floorcovering Alliance. Slobodien is not worried, though. “Customer requirements cannot be met solely by a manufacturer. When you look at what an NFA dealer requires, major manufacturers in hard surface flooring, like Armstrong, will struggle to meet the day-to-day demands of the customer. Corporations cannot provide the entrepreneurial incentive that local distribution can.”
At the end of the day, it is that focus on the customer that drives Apollo. “Dealers can buy from whomever they want,” he said. “Even if I have good brands, dealers can buy wood and laminate from Mohawk, Shaw or any local distributor with whom they are comfortable. We never take for granted that we have to earn our customers’ business every day. We work tirelessly to earn their continued loyalty, and we will be there if and when they need us.”
Slobodien added that he is very optimistic about Apollo’s future in the New York marketplace. “When we look at our product assortment and primary competitors, we like where we are positioned and the opportunities that are there for us. I am blessed to have the opportunity to run a business my grandfather gave to my father, and I hope to give the same opportunity to my children.”
Fairfield, N.J.—Many floor covering distributors have come and gone over the years in the ultra-competitive metro New York/New Jersey market, but Apollo Distributing has stood the test of time. Talk to third-generation president Keith Slobodien, and he’ll tell you there’s no secret—block and tackle, and the rest will fall into place.
If fundamentals are the backbone of Apollo, then focus and flexibility are the guts. Under Slobodien’s stewardship, Apollo has focused on controlled growth with the flexibility to quickly adapt to market conditions. “When it comes to basic business functions of distribution, we are the benchmark in our marketplace,” Slobodien said. “From placing the order to driver delivery to inventory to offering credit, we do it better than everyone we compete against. Everyone who comes here from other distributors say from our planning process to delivery of goods, we do it better.”
Flexibility is illustrated via Apollo’s sensitivity to changes in the market. “With builder down and residential replacement up, we shift our focus to new display placement, more sales training, better promotions and retail sales incentives,” Slobodien said, adding that Apollo is a very diversified company with involvement in residential, commercial, builder and DIY/ home center.
Apollo’s focus and flexibility led to 7%-8% growth in 2006, which is in line with 2007. Those numbers are fine with Slobodien, who steadfastly refuses to consider geographical expansion. “The goal is to be best distributor inside of my 100-mile radius,” he said. “We are a New York/New Jersey specialist. We don’t want to go the path of many of our competitors that have expanded their territory and in so doing lost focus on their core market. We look to get better, but not necessarily bigger.”
As well, it is rare for Apollo to take on a new line. The preference is to maintain focus on its core brands led by Armstrong and Wilsonart. “Our philosophy is such that we would rather have a more finite group of products in our geography,” Slobodien said. “If I have 12% of a dealer’s business, my goal is to increase that to 14%, and I don’t have to keep adding product lines to do that. We try to have improved services on existing products.”
So from where does Apollo’s growth come? “We are receiving growth on product lines that we may have been carrying for only two or three years, so we are just now hitting our stride,” he said. “In addition, we are gaining market share by doing a better job of getting dealers wood and laminate business.”
However, Slobodien is well aware that a company can grow only so far in a down economy. “Without a recovery, you can only stay ahead of the dogcatcher for so long,” he said. “If every dealer is going to be off 8%-10%, we will not be able to grow at the rate at which we have been.”
History
The entity that is Apollo was born in 1920 with Dave Slobodien, Keith’s grandfather, selling auto parts. Two decades later the business found itself manufacturing weapons during World War II before becoming the first Crosley crystal radio distributor in the country. Then in the 1960s, Apollo got into the TV and appliance business as the Zenith distributor for New York and New Jersey.
Flooring didn’t enter the picture until around 1972, when Apollo purchased the O.F. Ruphrecht Co., the local Congoleum distributor. Why the move from products seemingly bought by every American consumer? “We didn’t see a future in independent distribution for the TV and appliance business,” Slobodien said. “The factories were going to the big guys direct, and it seemed clear to my father that our future would not be in that industry.”
If floor covering was to be future, Apollo was not about to stop with Congoleum. It quickly became the Barwick carpet distributor for metropolitan New York and New Jersey. “At that time, 90% of the carpet being sold in this country was going through independent distribution,” Slobodien said. “Coincidentally, a bunch of Barwick distributors were also TV and appliance distributors who had diversified into floor coverings.”
Unbeknownst to Apollo, the decision that would shape the company forever came in 1982 when it acquired the assets of Empire Carpet, the Armstrong-owned distribution company in New York and New Jersey. “Ironically, we made the deal to get the carpet line,” Slobodien said.
Over the years, Armstrong became Apollo’s largest supplier. In fact, Slobodien credits Armstrong in large part for making it the distributor it is today. “The Armstrong structure forces us to be the best we can be, to keep our expenses in line and be a leading-edge distributor.” Of course, it doesn’t hurt that Armstrong is the best-known brand in the flooring industry, Slobodien said.
“Apollo has been a great partner of Armstrong’s for many years,” said Frank Ready, president and CEO, North American Floor Products, Armstrong. “Their dedication to Armstrong and commitment to excellence has made our relationship special. Nobody does a better job of servicing the New York market.”
If Slobodien has a soft spot for Armstrong, it’s totally understandable. Upon graduating college, he joined the family business as an Armstrong territory manager for New Jersey before adding New York and Connecticut to his responsibilities. “It was a very different business back then,” he said. “Resilient flooring was a significant part of the retail business. Every dealer carried three or four vinyl brands.”
Apollo’s other lines include Wilsonart laminate, BR-III and Eterna hardwood. “Wilsonart is the highest-quality laminate flooring supplier in the country and the industry leader in commercial flooring,” he said. “It is the only laminate flooring company today with a focus on commercial opportunities. Laminate is a great category that is underutilized commercially, and Wilsonart is at the forefront.”
Russ Rogg, director of residential sales, North America, is equally thrilled to have Apollo as one of its distributors. “They have been a consistent top performer among our distributor network since our relationship began in 2001,” he said. “In addition, they are the benchmark for all of our distributors when it comes to commercial successes.”
Slobodien attributes BR-III with helping transition Apollo from being a distributor with wood floors to becoming a wood flooring distributor. “They are the benchmark for exotic wood floors in North America. We are especially fortunate because exotic wood is extremely popular in this part of the country.”
As for Eterna, Slobodien classifies its quality as unmatched in the industry. “This is the one area that may have been wounded a bit in this market. A good part of our Eterna volume was driven by the builder segment. Also, consumers in this economy may find it hard to pay $6 for Canadian maple vs. $5 for American maple.”
Distributor with legs
Why has Apollo succeeded where others have failed? “Some were undercapitalized, like Crockett & Buss,” said Jim Russomano, vice president/general manager, sales. “They were floor covering people in business; we are business people in floor covering.”
Other wholesalers succumbed to consolidation or lost a critical line. Those names would include Eastern Tile (Kentile), Tri-State (Congoleum), Atlantic Building Supply (Azrock) and Turkletaub & Schiffer (Congoleum). Apollo even outlasted staples like Benj. Berman. “I think we did a much better job of transitioning from one generation to the next,” Slobodien said. “I will credit my father with preparing me. He taught me how to run a business, and I added my own style to an already successful enterprise. I’m a little more accessible, more friendly, more open-minded, more aggressive.”
Russomano agreed, noting it all goes back to leadership. “Like Richard, Keith has a tremendous work ethic,” he said. “They know and are intimately familiar with all facets of the business. Most people delegate and don’t understand every facet of the business. Keith delegates and then follows up.”
That fact is apparent to Wilsonart’s Rogg, who attributes the strength of his company’s relationship with Apollo and Apollo’s relationships with its customers, to outstanding leadership within the organization. “Keith is intimately involved with every aspect of the business and has been a driving force for our success with Apollo, but in addition, to the overall day-in and day-out strengths they exhibit.”
Aside from the aforementioned, Slobodien notes Apollo has many more competitive advantages:
Location: Apollo is the only major distributor in the country that can visit any one of its 2,800 customers within a three-hour drive. As well, there are tremendous economies of scale being able to do everything out of one location, Slobodien said.
Training: “We are obsessed with training. We train and retrain. We focus on one product line and then switch to something else. We run certification training for our guys to ensure they are properly qualified to sell our products. We train our own people as well as our customers.”
Stock: Apollo employs state-of-the-art systems to determine inventory levels. “We review inventory and order every day,” Slobodien said.
People: Many of its key employees have been with Apollo for 20 years or longer. “They understand our demand for customer satisfaction.”
Management: Apollo has three managers with years of experience in the field every day. “Our sales management team allows us to be more effective than most of our competitors. We have managers focused on each segment of the business. We probably have a faster management response time than anyone else.”
Looking ahead
There has been much talk regarding the future of independent distribution in response to some manufacturers going direct to select retailers, like the National Floorcovering Alliance. Slobodien is not worried, though. “Customer requirements cannot be met solely by a manufacturer. When you look at what an NFA dealer requires, major manufacturers in hard surface flooring, like Armstrong, will struggle to meet the day-to-day demands of the customer. Corporations cannot provide the entrepreneurial incentive that local distribution can.”
At the end of the day, it is that focus on the customer that drives Apollo. “Dealers can buy from whomever they want,” he said. “Even if I have good brands, dealers can buy wood and laminate from Mohawk, Shaw or any local distributor with whom they are comfortable. We never take for granted that we have to earn our customers’ business every day. We work tirelessly to earn their continued loyalty, and we will be there if and when they need us.”
Slobodien added that he is very optimistic about Apollo’s future in the New York marketplace. “When we look at our product assortment and primary competitors, we like where we are positioned and the opportunities that are there for us. I am blessed to have the opportunity to run a business my grandfather gave to my father, and I hope to give the same opportunity to my children.”
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