Article Number : 870 |
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| Date | 2/14/2006 12:10:57 PM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=870 |
| Abstract | Las Vegas—With 47% of its members’ sales coming from hard surface products, CarpetsPlus Color Tile officials stressed the importance of this part of the industry at the group’s Pre-Surfaces Convention... |
| Article | Las Vegas—With 47% of its members’ sales coming from hard surface products, CarpetsPlus Color Tile officials stressed the importance of this part of the industry at the group’s Pre-Surfaces Convention. Under the theme, “We’re All Family Here,” they unveiled new displays and programs designed to take advantage of the growing segment. Jon Logue, co-president of CarpetsPlus, said the group “has seen dramatic growth in hard surface sales since 2003.” At that time, the membership had only 30% of its sales come from these products. He noted while taking on the Color Tile name has certainly helped fuel sales, fact is, the American consumer’s craving for wood, laminate and ceramic continues to soar, with estimates that in 2005 laminate grew by 18% over 2004, ceramic was up 12% and wood 8%. To help members capture even more hard surface sales, Kevin Logue, vice president of marketing and COO, and Jason Kyzer, director of marketing for hard surface products, said the group “simplified its approach by de-cluttering and making room for better, brighter things.” In addition to an entirely new selling system—in both hard and soft surfaces—that showcases larger samples of fewer products deemed the sellers in a space that allows the consumer to see the rest of the store and not feel intimidated by a big, hulking display. “It’s time to get rid of those large displays that are not paying off anymore,” they said. What makes the system different is how the products are displayed. No longer are products relegated to a specific unit in a particular section of the store. Rather, they show them in relation to how consumers are decorating—using mixed media and within a whole home concept as opposed to a room-by-room piece meal approach. First, hard surface products are now grouped into three channels—residential replacements, builder/ new construction and commercial. “They’re no longer just wood, ceramic and laminate,” Kyzer explained. In addition, carpet and hard surfaces are being shown together to give consumers ideas and confidence in mixing the various kinds of floor coverings now available to them. The focus of this is the expanded Idea Center that greets consumers upon entering the store. The center is broken into two parts, one for carpet that was introduced last year, and the new one for hard surfaces. Connecting the two is the Idea Catalog, “a visually appealing book with room scenes showing mixed media applications,” Logue said. “It’s a great tool for her to visualize the design possibilities and works in conjunction with the Idea Center. “It’s different and can help you become the style and design leader in your community,” he added. “This is important, because nowadays you’re not just selling carpet and hard surfaces, you’re selling beautiful rooms and have to help her achieve her dreams for a beautiful home.” Ron Dunn, co-president, said of the Idea Center, “I haven’t seen anything where the consumer can stand in four feet of space and get educated on hard surface products. Despite the popularity of decorating shows, self-decorating is still intimidating for the average consumer. This is a way to help her get started with the right products for her lifestyle.” Mark Frost of Floor Show in Oak Harbor, Wash., a member since 1998, said he has seen similar growth in his hard surface business, “so these new displays and concepts are right up our alley. There’s a great deal of continuity to the space and the vendor packages we’ve seen are extensive.” Michael Moore of CarpetsPlus of America in Medford, Ore., called the new displays “awesome,” and “user friendly. They coordinate nicely and bring everything together in a uniform manner.” Reaction to what suppliers were showing also got a favorable reaction, noted Dave Wilkerson, vice president of hard surfaces for Shaw Industries. “The response and support from the members have been over and above.” Shaw was highlighting its new furniture finish in both wood and laminate products, something he said fits right in with CarpetsPlus’ strategy of upselling. “So much attention has been paid to texture, but at the upper end—beyond handscraped —products have a soft luster and smooth feel, or furniture finish. It’s an alternative to what is out there, especially in the exotic species which lean more to the upper end. It’s very exciting what is happening in hard surfaces.” While much attention was on the hard side of the business, the group still had plenty of new carpet and rug products and programs on display, including a core rug program designed to get more members into the segment while helping those already in it to earn more profits. “Rugs is the one area we can do better with,” Logue said, “and this program is designed to make members successful in this profitable arena.” Outside the showroom, the group buckled down on education by focusing on many of the things not necessarily seen by the public. From two general sessions by Bart Basi, author of FCNews’ “Financial” column and one of the country’s premier financial, legal and tax planning experts, to seminars on leadership—led by Warren Tyler, author of FCNews’ “Salesmanship” column—avoiding claims —by Lew Migliore, author of FCNews’ “Claims File”—and technology, members had plenty in which to engage themselves. Dunn noted the financial sessions are part of an ongoing series the group has contracted Basi to conduct because “this is the most undereducated part of the industry. Most of the people who run retail operations are good, smart businessmen, but they are mainly street smart and not so much on the financial side. With this program, we intend to give them insight into various accounting practices which can have a direct and positive impact on their bottom line.” “The fact is,” Basi said, “most retailers have no knowledge of how their business is doing. To do so, you have to understand what the basics are.” These include understanding and properly using the various accounting documents such as balance sheets, and profit and loss statements. Basi noted, “You don’t just make money with sales.” Examples he used are interest-bearing accounts, discounts for early bill payments and, of course, how an operation accounts for its business. For instance, “there are 47 different ways to calculate inventory and the way you do depends on your objectives.” |