Article Number : 4603 |
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| Date | 6/29/2009 8:14:55 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=4603 |
| Abstract | By Ken Ryan Working for Rite Rug these days is akin to being on a first-place team that’s running away with the division. The players—in this case, the division vice presidents— talk a lot about winning, having fun and... |
| Article | By Ken Ryan Working for Rite Rug these days is akin to being on a first-place team that’s running away with the division. The players—in this case, the division vice presidents— talk a lot about winning, having fun and making the company better. While other flooring companies are slumping or blaming their bad fortune on the prolonged housing slump and recession, Rite Rug is too busy growing its business, expanding into new markets and grabbing market share to worry about economic doldrums. In Rite Rug’s world, the recession is someone else’s problem. “We’re 75 years young, but we’re like a new company,” said Larry Noel, the vice president of retail sales who also oversees the company’s Realtor Direct and Mr. Edwards In-Home Shopping divisions. “Other companies just cut overhead; we might cut overhead but we look to grow in other areas,” said Tom Donev, a vice president whose areas of responsibility are New Construction Sales/Windows Treated Rite/Michael David/Creative Hardwood Floors. “We’re so diversified that it has helped in many ways,” said John Kelleher, vice president of Property Management, which also includes Commercial Sales and Floor Care. Over the years, Rite Rug has expanded from its retail roots to add new construction, commercial, property management, the Michael David Design Center, floor care/maintenance, Creative Hardwood, Windows Treated Rite, Realtor Direct and Trade Professionals Wholesale divisions. Much of that growth has taken place in the last decade. In 1997, 95% of Columbus-based Rite Rug Co.’s annual sales came from transactions with central Ohio homeowners. By 2002, about 50% was residential retail. Since then, the revenue has been spread among the other divisions, leaving Rite Rug better positioned to survive a downturn. “Michael’s drive is to get us into a lot of different markets and keep growing,” Kelleher said, referring to Michael Goldberg, Rite Rug’s chief executive, who has fostered a winning team spirit throughout the organization. Donev said Goldberg hires the best people, period. Donev said he was on a recent business trip with Goldberg in Poland to learn about Jewish heritage when someone asked Goldberg if he employed many Jews. Goldberg replied that he does have Jews on the staff but he doesn’t hire based on religious or ethnic reasons. “He judges people based on their results, not their backgrounds,” he said. “That’s the best assessment of him I can think of. If you look at it through the company, we’re pretty consistent, we’re aggressive, we look for opportunities, and we look to keep growing.” Following is a closer look at Rite Rug’s businesses: John Kelleher, VP Property Management/Commercial Sales, Floor Care About Property Management: Rite Rug is the largest flooring supplier to apartment complexes in Columbus, Cincinnati, Cleveland, Dayton, Indianapolis, Lexington and Louisville, servicing more than 200 communities. Rite Rug created a Property Management division in 2000 following the acquisition of two large central Ohio distributors. The move allowed Rite Rug to add Indianapolis, Louisville and Lexington to its coverage area. About Commercial: Rite Rug’s Commercial Division specializes in flooring products, installation and maintenance for newly developed and existing commercial establishments. With one of the largest warehouses in the nation, Rite Rug’s Commercial Division can offer hundreds of selections of name-brand commercial floor coverings. Rite Rug reclaims most of the carpet it takes up and uses only environmentally safe chemicals for installation and maintenance. About Floor Care: Floor Care/Cleaning/Maintenance Division, which is the only StarNet Floor Care certified training center in the nation. Rite Rug uses only Carpet & Rug Institute (CRI) approved chemicals and equipment. Kelleher has heard through the mills about the harsh effects of the national economy, but he said his property management/commercial business has more than weathered the worst recession in two decades. “We’re having a great year in a tough market,” Kelleher said, noting that Rite Rug’s property management sales are up 18% over last year. In the last six months, Rite Rug entered the Cleveland market, joining Cincinnati, Dayton, Indianapolis, Louisville and Lexington, Ky., as markets it serves. Kelleher said Rite Rug has benefited by the way its property management customers have upgraded their units with top-of-the-line products. “There’s competition to get into these rentals but we’re doing a good job getting most of that business,” he said. “We have a great team and we sell that to the market. Everyone has worked in their roles to make it happen.” The commercial segment is up 12%, and the number of projects in the pipeline should ensure a strong year for the group. “We put in a lot of hard work last year on the commercial side to get in and bid the work, and the relationships my sales reps have built with customers have really developed our business. Commercial has been tough for the last couple years but [business] has been very good for us.” Rite Rug’s Floor Care unit customizes its products for each builder’s needs and budget. Kelleher said the company’s new construction installers are specific to the building industry and are experts in new building processes and codes. “We have some very dedicated and knowledgeable people in that division,” Kelleher said. “That goes for all the units. The professionalism of the staff is what drives the success of the business.” Larry Noel, VP Retail Sales/Realtor Direct/Mr. Edwards In-Home Shopping About the division: Rite Rug is the 8th largest flooring retailer in the U.S. with 19 locations in Ohio and Kentucky, and more than 200,000 square feet of warehouse space, including a 90,000-square-foot warehouse in Columbus. For consumers who don’t want to leave their homes to shop, Rite Rug makes house calls, bringing their showroom and customized services to their customers. Mr. Edwards In-Home Shopping is a free service for consumers with next-day installation on all in-stock selections. About Realtor Direct: Rite Rug Realtor Direct is a customized program based on the needs of real estate professionals. To help with the sale of a home, Rite Rug Realtor Direct representatives meet realtors and/or their clients anywhere with the Realtor Direct Mobile Showroom. They bring hundreds of products directly to the realtor and their clients. This wholesale program offers the best pricing and financing options, and offers high-end and value-grade products in stock and ready for next-day installation. Rite Rug Realtor Direct is a separate division of Rite Rug and is only available to realtors and their customers. Noel joined Rite Rug in 2000 after 15 years at Shaw, where he was a division head in charge of the East Coast. “Rite Rug had been around a long time and needed a little juice,” Noel said. “Michael called me and wanted me to run retail for them.” Noel and his team have certainly juiced up the retail division. “We’re buying the right products, pricing them right, merchandising them the right way,” Noel said. “As a result, we’ve been able to grow our business and take market share.” Noel, who has been in the flooring business for 26 years, said he has never worked with a better, more driven sales team than his current group. “They’re the best salespeople around. We let them earn what they can earn. We say, ‘Go get ‘em, baby,’ and they do.” The Rite Rug retail sales reps have the ability to be aggressive when need be—or as Noel put it, “Go for the win”— and yet be good listeners when the occasion calls for it. “We want to do what is right for the customer and not just look to nail the sale,” Noel said. “The customers want the biggest bang for their buck these days and we give it them.” Rite Rug recently opened a new store in western Kentucky, part of an expansion plan that has set it apart from other retailers during this recession. “I talk to people whose businesses are down 25% to 30% and are worried about their futures,” he said. “Rite Rug is concerned about what market to open next or what special to buy. We’re thriving.” Rite Rug serves many rural markets, and that requires a dealer who can provide a wide range of products and services. This is where the depth and breadth of a top-10 retailer like Rite Rug can outperform a smaller dealer. “We have 70 installers who are ready to install in your home tomorrow,” Noel said. Tom Donev, VP New Construction Sales/Windows Treated Rite/Michael David/Creative Hardwood Floors About New Construction Sales: The builder division is customized and streamlined to cater to each builder’s individual needs and budget, providing more flexibility throughout the building process. More than 2,000 coverings are available, including carpet, hand-scraped hardwood, marble, slate, ceramic, laminate, vinyl, window coverings, backsplash options and even environmentally friendly flooring. Installers work within a builder’s schedule. About Windows Treated Rite: This is a full-service, custom-fit window covering provider offering professional, free, in-home consultation. The service offers hundreds of name brands, colors and styles for consumers to choose from. About Creative Hardwood Floors: The hardwood specialty division of Rite Rug installs hardwood floors, refinishes and custom stains on-site. Rite Rug installs and stains the floors exactly to the preferred look or will refinish the current hardwood with a sanding technique that is virtually dustless. Some of Rite Rug’s executives are seasoned veterans who owned their own companies at one time or worked for a major mill. And then there is Tom Donev, who joined the company practically out of college and has worked his way through the sales ranks. He is a 31-year-old vice president of a major division. “It’s been a lot of fun learning how to handle the job and getting a lot of support along the way,” he said, heaping praise on Michael Goldberg for showing faith in his ability. Donev is heading up new construction, which has been the most adversely affected division. He said new construction at Rite Rug has been flat, but “we’ve done well compared to the market. We have been able to pick up share.” Rite Rug’s sector has expanded twice in the last two years, to Indianapolis and then Cleveland. Donev senses the building industry has bottomed out and conditions are starting to improve. “I think we’ve passed the worst of it, that we’re beyond the nervous times,” he said. |