Article Number : 4126 |
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| Date | 2/9/2009 10:35:58 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=4126 |
| Abstract | By Sarah Zimmerman Whether the economy is booming or breaking, affluent homeowners are still spending, said Larry Golden, co-CEO of RSVP Publications—an upscale direct marketing firm specializing in marketing to the affluent homeowner. And, this includes making flooring purchases... |
| Article | By Sarah Zimmerman Whether the economy is booming or breaking, affluent homeowners are still spending, said Larry Golden, co-CEO of RSVP Publications—an upscale direct marketing firm specializing in marketing to the affluent homeowner. And, this includes making flooring purchases. “However, that doesn’t mean affluent homeowners haven’t changed their spending patterns,” he warned. “During the economic slowdown, emerging patterns provide valuable clues for businesses selling to this market.” In agreement, James Donlin, president and CEO of Van Millwork—the largest interior millwork supplier in New England, said double-income households have increased over the past decade, resulting in a higher population of affluent consumers. “The middle- to luxury-income market continues to buy, though prices may have dropped —which is expected.” Jon Pierce of Pierce Flooring & Design, located throughout Montana, took note of a similar trend, stating many affluent consumers are choosing to stay closer to home and therefore looking for increased value. “Women love to beautify their homes, and flooring serves as the foundation for most decorating.” On the same note, Gary Canizaro, owner and president of Premiere Floors in Kenner, La., suggested a recent abundance of empty-nesters—who had postponed redecorating until the children moved out— have now entered the market. “These customers generally want upper-end products and are ready to spend whatever it takes to remake their homes to reflect their personal tastes.” So, what strategies should dealers utilize to attract this echelon of buyers and increase business in ’09? Gary Cissell, director of flooring for Nebraska Furniture Mart, based in Omaha, Neb., said continued advertising to this specific segment offering—particularly direct mail—is key. “These customers, like most in down economies, want normalcy,” he said. “The difference is the affluent customer has the disposable income and willingness to make purchases that appeal to this need.” Cathy Buchanan, owner of Independent Carpet One Floor & Home in Westland, Mich., said affluent (and all) customers “like a card or two reminding them of sales. For example, we send existing customers anniversary cards a year after their purchase thanking them and providing them with a coupon for their first cleaning.” RSVP’s Golden is another proponent of direct mail marketing, but ultimately says the key to successful marketing is to be proactive, not passive. He noted three steps to success; answer the following: 1. What is the public buying? 2. Why are they buying it? 3. How do you help them buy it from you, now? “Once you’ve answered these questions, send direct mail, targeted offers to people, pointing out differentiators— financing, delivery, professional installation, etc.” However, Van Millwork’s Donlin said according to the company’s research on affluent consumers, 44% rely on the Internet to research products and services, making Web advertising the most influential, followed by television and radio at 35% and print ads at 24%. He also suggested initiating competitive, promotional offerings, which the company did to jumpstart its flooring additions— including Bruce and Stuart—late in quarter two of ’08. Pierce Flooring also utilizes Web capabilities, running customer testimonials both on its site and as television promos. “There is no ad you can buy that is better than word-of-mouth marketing.” He also listed out-of-the-box methods as attention grabbing. For example, Pierce recently held a free fashion show in one of its stores with actual models and designers, but incorporated samples of its green products. The store also held a presentation on its recycling efforts following the show. “The milage and good-will buzz we create in our communities is very positive.” And, Canizaro pointed out that aside from networking and referrals, first impressions also say a lot. “Your showroom and staff must be reflective of other retail stores where she is currently shopping for clothes and housewares. The entire project must be presented as an all-inclusive, no-worries approach to the customer.” |