There is no question the last several years have been challenging for business and especially the retail residential flooring market. But 2011 seems to have stemmed the fall and, according to my unscientific survey which consists of asking everyone, business has either steadied or begun to pick up. In some geographic markets business hasn’t changed much, in others things are turning around and in some; business is actually making a dramatic up swing. Think of this as a train; all the cars are moving together but they all arrive at a destination at a different time, the engine first and the caboose last but they all get there.
The high end of the market is doing well and sales of all luxury merchandise are steady and rising. Dixie (Masland and Fabrica) is proof of this with sales up dramatically in the last year. Luxury vinyl tile sales (Centiva, etc.) are up in excess of 50% and that’s conservative. The lower end of the market is also on fire. Multifamily housing carpet sales are up at least 22%. Engineered Floors, Bob Shaw’s new company, which concentrates on the multifamily market is the hottest company in the flooring industry, manufacturing solution dyed polyester that looks good, performs well and fills a need in the market that you should all be jumping on. Bob Shaw is a master of success in a down market.
Every building and home has some type of floor covering and everything you sell will go into one of those locations. Flooring only lasts so long visually and we’re at the end of an era where the flooring has been down beyond what many may have expected. Eventually, it has to be replaced and we’re at the point where that’s happening. So I predict, with inevitability, you’re going to see a steady increase in business. The only thing that’s going to keep that from happening is you. So this is what I think you have to do.
You have to have a presence on the internet because today, most people look there first to research a product and flooring is one of those products that begs research on. You have to stock your store with the types of merchandise your customer wants for the market you serve and it would help if you understood your market. You have to ask yourself, what business am I in and who is my customer? You have to focus your attention on your strengths and weaknesses and do whatever it takes to make the strong part stronger and the weak part stronger. You have to have a store people will want to shop in and not a mess that would only be inviting to a slob. Most of your customers are women and you have to cater to them and understand them, which is extremely difficult for a man to do. Most of us have not advanced much beyond the Neanderthal stage, so it would behoove you to hire some classy women or men who understand what women want. You are after all, believe it or not, are in a style and fashion industry as flooring makes up one of the components of the décor of a home. Just watch HGTV to understand how significant flooring is. Every single woman who steps into a house on any show on this channel mentions the flooring.
Have some confidence in your business and less patience. Go out and get business like a squirrel after a nut. If you don’t ask you won’t get and if you don’t get, you won’t be successful in your endeavors. 2012 can be a good year for you if you want it to be. If you’re reading this your still among us, that speaks volumes. So now, go do better.
Author: Lewis G. Migliore
LGM and Associates – The Floorcovering Experts