Article Number : 4486 |
|
Article Detail |
|
 | |
| Date | 5/18/2009 9:44:51 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=4486 |
| Abstract | By Sarah Zimmerman As the industry nears what experts are hoping to be the perfect storm’s nadir, everyone is focused on tightening business strategies and securing new ways to increase profitability on existing sales while prepping for the turnaround boost. However, in the midst of... |
| Article | By Sarah Zimmerman As the industry nears what experts are hoping to be the perfect storm’s nadir, everyone is focused on tightening business strategies and securing new ways to increase profitability on existing sales while prepping for the turnaround boost. However, in the midst of a think outside-the-box mentality, some dealers are foregoing one of the simplest profit accents—moldings. “If you’re not offering and selling moldings to nearly every job you get, you are missing an easy opportunity for substantial profits on every single sale,” said Daniel Kalnback of ProSource of Cincinnati. “Generally speaking, 95% of your jobs will require moldings,” he explained. “And, once a consumer has picked out flooring—the more expensive product—she usually does not think too much about the add-on cost of necessary trim, which is why profitability opportunities remain high in the segment.” Similarly, Thilo Hessler, president of Versatrim, noted the most daunting part of moldings for a retailer is simply not offering them. “If you do not provide and showcase moldings in your store, you will not only lose all of the add-on profit opportunity, but many times entire jobs as well.” Gary Hernandez, president of Empire Mouldings Inc. (EMI), agreed consumers can never be truly happy with a job if moldings are not part of it. “Moldings complete a room,” he explained. “Without trim a room is never finished and customers can never be satisfied.” An additional tip to drive profits, Kalnback noted, is to “buy in bulk and keep an inventory of moldings on hand. You’ll get better deals from your suppliers in doing so, which in turn, makes your return on investment even higher.” So, what’s the best method for breaking into the profitable accent arena? Though moldings are a common-sense necessity with nearly every flooring job and therefore quite an easy sell, Ralph Zaichik, president of Coastal Wood Flooring in Los Angeles, explained a consumer-friendly, she-talk analogy he often uses, which his target audience— women—readily understand. “Moldings accent and transition flooring from room to room and floor to ceiling,” he said. “I relate this to fashion when selling the add-on trim pieces, telling women moldings are the accessories of flooring—the outfit. Without the right earrings or necklace (accents) an outfit (floor) is never complete and recognized for the beauty it holds.” Kalnbach also said an important part of the add-on sale is making the consumer feel just as involved as with the original flooring decision. “As moldings still vary and are a unique investment from customer to customer, job to job, it is important to educate and involve your consumer in what’s available—types and colors.” A great way to do this is with displays, Zaichik noted. He said suppliers often provide unique and stylish selling systems that showcase their products. For example, EMI offers its Envision Sample Systems, which feature a variety of sample boards and flooring sample systems to display multiple offerings— unfinished moldings, prefinished moldings, true color matching, Flexitions, as well as stair treads and risers. Meanwhile, Versatrim provides retailers a free, no obligation sample package, which includes its 4-foot-tall display. It also offers molding units showcasing its color capabilities. However, Kalnback and Zaichik said one of the most important aspects of reaching full profit potential is aligning with the correct supplier. Kalnback, a Versatrim partner, said he chose the manufacturer for four very important reasons: “Versatrim has fantastic turnaround times, allows us to buy in bulk, offers amazing display systems and produces an expansive array of colors.” Zaichik, on the other hand, partnered with EMI for its “unmatched customer service and quality product offerings. It truly goes the extra step to help its dealer partners,” he said. For more on Versatrim, call 866.200.8132. For more on EMI, call 951.686.3331. |