Omni’s Bob Hoff steers Omni through sea of changes and expansion
BY MARY JO MARTIN
Editorial director
It’s only fitting that the man at the helm of the Omni ship is a former sailor, serving in the U.S. Navy and then graduating from Old Dominion University in finance. Thirty-six years later, Bob Hoff laughs as he looks back at the launch of his business career. “I had my eye on Wall Street but the water heater industry seemed more intriguing. After a number of years with first A.O. Smith and then Bradford White, I landed on Omni’s doorstep. Now, 25 years later, I’m still with the family that took me in.”
With 259 current members encompassing close to 500 locations, Omni continues to grow, with interested members forming a new group, the Luxury Products Group in 2009 that currently boasts 100 members. Hoff insists that Omni’s success is not due to any one individual, rather it was born out of a combination of great ideas contributed throughout the years from both members and vendors.
Omni hosted the inaugural meeting of its Luxury Products Group January 29-30, followed by its Spring Business Meeting January 31-February 2 in Miami Beach. As he was preparing for these events, Hoff took the time to talk with editorial director Mary Jo Martin about the direction for Omni and successes being realized by its members and vendors.
MJM: What are some of the key evolutions of the group over the years that have allowed growth opportunities or signaled changes?
Hoff: Some landmark changes occurred around 1994 and 1995 that put us on the fast track. Those changes were:
- We went from private ownership to 100% member ownership
- There was a discontinuation of central billing in lieu of direct billing
- Omni created a participation policy that basically said “maximize your support of our valued vendors and you will be rewarded.”
Can you share the process that prospective members and vendors go through to gain admittance?
Hoff: With the value of the Omni program and the willingness to support our vendors, it is not our objective to saturate the market with distributors. With that being said, potential members must meet certain criteria, such as minimum sales level, credit worthiness, market coverage and the willingness to support our vendors.
With respect to vendors, it is our objective to support our membership with a selection of product that is readily available to each member within the group. Potential vendors are evaluated as to the benefit they bring to the group. They must submit a comprehensive application that is reviewed by the task groups and ultimately the board of directors. When selected as a vendor, they are expected to fully support our Omni program as the membership is rewarded for supporting them through a participation policy.
MJM: Are members and vendors often brought to your attention by recommendation of current members/vendors?
Hoff: Yes. We have found that our best salespeople are our current members and vendors. They take pride in sharing their Omni experience and have helped us convey that message throughout the industry. It has served us immensely in building a close-knit family.
MJM: Could you share with us some of the responsibilities of the Omni corporate staff, starting with you, Bob?
Hoff: Well, I guess you could say I’m “captain of the ship.” With input from the membership, our board sets the course they would like to take and I steer the ship. We have a nine-member board. Board members serve three years with no more than two consecutive terms. It is a staggered board that sees three positions elected every year.
My Omni cargo at times has been well over a billion dollars. Sometimes it’s sunny skies with smooth sailing, and sometimes the seas are rough with a lot of other vessels and reefs — but we find the right channel for us and we stay the course.
The other members of the team stoke the boilers (ha!). Linda Koenig has been with Omni the longest, having over 26 years of dedicated service. As MIS director, she has served many roles, from controller to computer support and meeting planning, as well as her latest responsibility of spearheading the Luxury Products Group.
Harvey Wasserman, with just over 22 years of service, is director of marketing services, which includes vendor program administration, website administration, promotional program implementation, and general member and vendor program support.
Rounding out our team are Kim Bogucki, Ann Travarca and Heather Morris, and the newest member of the staff, Brian Astman, who came on board last year and is learning the ropes. He should prove to be a valuable asset.
We don’t have time here to cover all the value that our staff provides, but I can sum it up by telling you what I tell our employees: “Since there are only seven of us, in addition to your day-to-day activities, you are expected to do what is necessary in making Omni successful.”
MJM: What are the benefits that your members seem to appreciate or take advantage of the most?
Hoff: All of our programs are valued by the membership and make up the Omni Advantage. One that stands out in my mind is the FBI (frequent buyer incentive) program. I believe FBI fosters getting more of our members’ key people involved in our annual meetings and enhancing the relationships with our vendor partners.
MJM: Have you had to make any adjustments within Omni due to member acquisitions, closures and/ or the economy?
Hoff: We’ve tightened the belt as everyone has had to do; the recent economic downturn has affected everyone. As independents, our members are phenomenal in reacting quickly to address areas that need to be shored up and making the changes necessary to weather the storm. I am convinced we will pull through stronger than ever while taking share from the chains and big boxes.
We will also continue to expand our service level to meet the needs of our membership. The Luxury Products Group is a prime example.
MJM: This past year, you unveiled the Luxury Products Group. What was the driving force/idea behind forming such a group? And with the current situation in the construction/housing market, did the timing of this launch cause you any concern?
Hoff: We had supported the showroom development of a lot of our members for many years through speakers, seminars etc. Over 80% of the Omni membership currently has showrooms and many of our members wanted a greater focus on decorative plumbing. We listened, and gave them more — The Luxury Products Group.
The timing of our launch has not really been a concern. There is still a target market that yearns for something different and unique to put into their homes, and have the money to buy it. The decorative market is a bit smaller than it was a couple of years ago. But, time will give us the advantage to build and prepare the Luxury Products Group Inc. so when the market starts to accelerate, we’ll be there and have the product mix as well as showrooms to support it.
We have a lot to learn as we venture forward; I’ll be the first to tell you that. But, with the guidance of our members and supporting vendors, I’m confidant in the future and the success of the Luxury Products Group. Initially we want to earn a high level of confidence with our membership and vendor partners. It is a partnership and building the relationships will be key. Only then will we be able to set the stage for our ultimate goal — a network of professionally driven showrooms that offer the products and services one can rely on and trust. Expectations are high, and we’ll have challenges to meet, but you’ll be hearing more and more about this group. One thing is for sure. Omni’s 30-year experience level and success serves as a great launch pad.
MJM: How many annual meetings do you have, and what are some of the key activities at these events?
Hoff: We have three meetings each year. Our largest is always at the end of January, which we call our Spring Meeting because it is a springboard that gets everyone keyed up to kick off the year. It is really the event that is key to networking with our vendor partners. In May, we host the Board/Shareholder Meeting, and then in August is our Vendor Invitational Meeting, which is designed to provide special meetings between our vendor committee and invited vendors.
Among the activities that take place at our meetings are vendor presentations, committee meetings, a board meeting, special interest forums for networking, conference booth program, program reviews and ample time for relationship building.
During the Spring Meeting, we concentrate on the interaction between members and vendors. Due to the number of attendees, we have open sessions so the members may visit the vendors at their tables, in addition to vendor-requested meetings where the vendor selects scheduled time with members. At the Vendor Invitational Meeting, there are structured relationship reviews with our invited vendors and a group reciprocated by the member liaison.
We have learned over the years from both members and vendors that they especially value the relationships they’ve built during our meetings. There is plenty of time for camaraderie, but at the same time, we get down to business with featured product presentations, special interest forums to share thoughts and ideas, as well as best practices. The conference booth allows ample time for our members and vendors to enhance their partnership and build their business.
MJM: What do you think makes Omni stand out?
Hoff: Our members and supporting vendors. Anyone who attends one of our meetings can understand exactly what I am saying. Nowhere else will you find the camaraderie, relationship, networking and fun that brings it all together in helping to build a solid business relationship.
For more information, visit www.thinkomni.com.