Article Number : 2075 |
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| Date | 6/22/2007 10:18:38 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=2075 |
| Abstract | Remaining a step ahead of changing markets and investing in durable equipment are key to one company’s remarkable success... |
| Article | The various trades that make up the construction industry in the U.S. have always been extremely competitive. Companies are constantly seeking ways in which they can outmaneuver their competition, yet those companies that prosper generally do so by recognizing and appreciating the simple rules of how to run a good business. The tile and stone industry is no different. The market is varied – including residential, commercial, hospitality and retail – and there are many companies out there trying to gain an edge on the competition. Most companies follow an established trend but are then subject to the whims of the ebbs and flows of the U.S. economy, often to painful, even disastrous results. Others dabble in the market as an add-on to other construction services and never establish the credibility of a specialist in the arena. When it comes to building and maintaining a competitive construction firm in the tile and stone arena, Bill Tsagrinos, however, is one industry veteran who knows what he is talking about. The owner of T-Brothers Tile, headquartered in Las Vegas, Nevada, has definite opinions on the best ways to remain competitive. “First of all, it’s really important to anticipate changes in the marketplace,” notes Tsagrinos. “For a time, new residential construction was very hot in the Las Vegas area. I knew it couldn’t go on forever, though, so before the market started to slow, we began reaching out to the commercial market, as well as to homeowners who had built equity in their homes and were looking to remodel. We also partner with design centers and retail flooring companies. And that strategy has served us well.” T-Brothers Tile, which specializes primarily in the installation of custom tile and stone, but also offers prefabricated granite, wood flooring and window coverings, was started in 2004 with an initial investment of $10,000. Since then it has grown into a $6-million company, and this year T-Brothers Tile came in at #34 in the Entrepreneur Magazine/Price Waterhouse 2006 Hot 100 list of companies. It is hard to argue with success like that, especially since the company’s rate of growth hasn’t yet slowed down. “The market is always changing, but a lot of companies get stuck pursuing only the one area of that market that’s been successful for them in the past,” adds Tsagrinos. “We take more of an entrepreneurial approach, and try to anticipate where the market’s headed. That’s what encouraged us to pursue both commercial work and the remodeling arena.” A second part of the company’s strategy to remain competitive is Tsagrinos’ determination to keep business practices more cost-effective than many of his competitors, thus allowing the company to pass on significant savings to its customers. “I’d much rather pay installers than fabricators,” notes Tsagrinos. “Instead of spending $40,000 for a cutting table and hiring a staff to cut granite slabs into countertops, for example, I order the slabs pre-cut to countertop depth. That means that a good percentage of the cutting is done on site by the installers, and we can then pass that savings onto our customers.” With much of the responsibility for the cutting shifted to the installers, the quality of the equipment used became another, very important ingredient in the overall recipe for success. Since installers traditionally supply their own tools, this aspect required T-Brothers to find a way to ensure that each installer use quality tools. “We started an employee purchase program to buy several types of saws that the installers can then purchase from the company over time,” explains Tsagrinos. “While we give our installers their choice of which saws to buy, we insist that the saws used are quality, heavy-duty tools that can stand up to the wear and tear of the average job site. “For us, Felker is the tool of choice,” he adds. Among the saws his company uses for efficient and accurate cutting of granite, tile and stone are Felker’s FRS-38 and FRS-51 rail saws as well as the Tilemaster and Trackmaster lines. “And more than 90 percent of our installers choose that same brand. That meets our major concern, namely, that the tools will be able to get the job done, day in and day out, without either breaking down or sacrificing quality.” Tsagrinos says his firm is sold on the brand’s continuous-duty motors and drive systems that allow perfectly straight cuts and reduce error. Because his company works with a variety of materials, the speed control on the drive motors that allow operators to adjust speed to match material hardness is a particularly important feature. Another secret to the success of any company is the realization – not so obvious to all firms in the construction business – that the success of the company depends on providing superior customer service to its clients. Typically, when companies vie for business in any industry, competitive strategies are focused on pricing. Beat your competitor’s price, goes the thinking, then a certain amount of business will result. Eventually, though, when prices hit rock bottom and can no longer be cut without endangering the company’s profitability, the area of competition shifts – often to customer service. “Well, we’ve known that we’re a service-oriented company from the first, so we’ve always made it our mission to deliver up to the customer’s expectations,” says Tsagrinos. “Quality, heavy-duty tools support the promise that we make to our customers, a promise of the highest craftsmanship in our work.” Features like the rail system on Felker’s Track Master III, which holds the saw ¼” off the slab to reduce the risk of damage to the material, assists the company in meeting customer expectations. Because the saw cuts with no variance at the outside edge, it minimizes the need for grout and reduces the time consuming process of aligning grout lines and leveling uneven slabs. The company also found another way to reach out for business – by forming strategic relationships with companies that provide complementary services to Tsagrinos’ business, like flooring and carpeting. “The fact that we’ve formed alliances with companies in other areas of the construction industry is important for two reasons,” continues Tsagrinos. “First, our agreements with retail flooring companies bring in work. Second, these companies are generally fast paying. This is of particular importance to a company just starting out because it improves that company’s cash flow, which can be critical while you’re trying to build up some momentum.” The trajectory of T-Brothers Tile’s growth over the past few years can serve as a model for anyone who is competing in, or who might be considering entering, the tile and stone industry. Like any facet of the construction market, tile and stone is a very competitive environment, but, as the company demonstrates, a nimble firm that can remain flexible and open to new directions can be very competitive. What does the future hold for T-Brothers? The question inspires a chuckle from Tsagrinos. “About the only thing I can say for sure is that we’ll keep growing,” he says. “More than that, who knows? That’s the thing about adapting to the ups and downs of the market. It’s always changing, so we’ll always change. It’s that simple. “Of course, the other nice thing about not having a crystal ball is that it keeps things interesting,” he adds with a smile. “You’ve always got to keep your eye on the road ahead but stay light on your feet at the same time.” For more information about Felker saws and blades, contact Felker at 17400 West 119th Street, Olathe, Kansas 66061; Phone 800-365-4003; E-mail customerservice@felkersaws.com; or visit the web site www.felkersaws.com. |