Las Vegas—What’s in a name? Everything, especially when it carries national consumer recognition. That’s what the members of CarpetsPlus (and Carpet-land) have found out in the eight short months since they were given the Color Tile brand. At the buying group’s annual Preview to Surfaces convention, members and management united en masse to not only celebrate the franchise’s leap to a full-service interior decorating company but to make sure everyone knew and understood the power of the Color Tile name and what it can mean for their businesses. “We knew Color Tile would be a hit,” said Ron Dunn, co-president and CEO, “but it has really taken off to where everyone is on board. We had a need for a hard surface program and this did more than give us the blueprint for one. “In fact,” he added, “we went from no formal program eight months ago and leap frogged to be on par with our soft surface program. That’s because in addition to the membership embracing it, our suppliers have really stepped up and put a lot of resources behind it because they like what we are doing and appreciate the excitement from the dealers.”

These are not idle words, as two of the industry’s biggest executives were on hand to echo Dunn’s sentiments. “It’s not often that I get to speak to the third largest group in the industry,” said Jeff Lorberbaum, president and CEO of Mohawk Industries, to the membership. “It is really incredible what you have accomplished and you deserve all the accolades you’re getting.” “Thank you CarpetsPlus, Color Tile and Carpetland for solid increases across the board,” proclaimed Keith Campbell, chairman of Mannington Mills. “You represent the heart and soul of Mannington’s business—the professional specialty retailer.” “It really has come together,” noted Jon Louge, co-president and COO of Alliance Flooring, the umbrella company for CarpetsPlus, Color Tile and Carpetland, who introduced a new cut-set sample program that basically completes the soft surface program. “That’s the last major component.”

Throw in the new private label rug program that members had requested and all the in-store merchandising is complete. “Now we can just fine tune it as needed,” Logue said. “Because of our members,” Dunn added, “the management team has been working so hard to keep up the positive momentum and energy they have created. It’s always uplifting to be around the members in this type of gathering because we pride ourselves on being a company that can work with suppliers to bring them great opportunities. And the members respond, which is why the vendors continue to go all out for us.” It seemed as though everyone—members and suppliers—went all out this year as this was hailed as the largest convention in the group’s history. Nearly 600 people signed up for the exhibit hall alone. Dunn said as of the convention CarpetsPlus stood at 420 stores in 43 states. “We’re just breaking into the Northeast. That’s the final area on the map that needs to be filled in.” And, at the rate the group is growing—150 new members last year—officials do not expect it to be too long before the country is saturated. “We’re about three years away. CarpetsPlus will drive the growth and top out between 700 and 800, while Carpetland should only go up to 80 because it is a more specialized type of store.”

What allowed CarpetsPlus to be completed was, of course, the addition of Color Tile. And while the membership is on board, a great deal of time and effort was made at the convention to drive the point home about how valuable the Color Tile component can be to a retail operation. This is not just because of the brand name itself, but because it is estimated that 61% of a specialty dealer’s installed business will come from hard surface products. So “we wanted a system that better organizes the hard surface offerings,” Dunn noted. But, it is the Color Tile name that truly carries the weight. As John Ayer of Oregon explained, “Shortly after I had the Color Tile name on my storefront and in ads, my phone calls increased by four times and my drop-in traffic went from an average of four a day to 10. And, when we ask why they came in, the answer has always been they saw the Color Tile name. The consumer has no negative feelings about it. In fact, to her it has always been there across the country. She has no idea of what went on.”

Tony Ausilio Jr., a recent recipient of the CarpetsPlus Dealer of the Year, was so excited about the potential of having Color Tile he was literally taking the displays off the exhibit floor and to his flagship store in California. “When the show is over, we’re having these displays shipped over. We are going to us three-fourths of our 6,000-sq.-ft. showroom for Color Tile. It will be a prototype for existing and potential members to see what can be done. “And I was initially hesitant on Color Tile because of what happened to it in the late ’90s,” he added. “But I researched it and found the consumer has no clue of the negative stuff and has only a positive reaction to the brand. That made me realize we are onto something special.”

 It was that message CarpetsPlus really drove home during the convention. “Why do you think “The Sorpranos” picked Color Tile during a scene in which they wanted to buy flooring?” asked Kelly Talamo, the group’s in-house motivator. “They never called to ask, they just used it because the executives of the show know it is a powerful consumer name in floor covering; one with which their audience could relate to.” He then went on to explain how the industry has two minds: the industry one and that of the consumer. “They are not related as the consumer does not know or get the inside information you do about the industry, such as Color Tile. “This was a calculated purchase because Ron and Jon did their research to see how Color Tile is perceived and viewed by the consumer. And, when you get right down to it, what she thinks about it is really the most important thing.”

He added how 95% of all decisions are made on emotion, “and consumers have a positive feeling toward Color Tile. “Therefore, are you willing to give up a little piece of personal identity in place of a national one? You should because it doesn’t take anything away from you and your name. Instead, it enhances them because every brand has a story behind it—its history. That’s a way to identify with it and links you to the emotional side. “Brands act as a sorting device by the consumer,” Talamo continued. “They allow her to focus her mind on a particular area. It’s a trustmark and it leads the customer to you.” Brands are also a way to build loyalty, said Sam Allman, dean of Mohawk University. “Loyalty is the most important foundations for ongoing business. Satisfaction has nothing to do with it.”

He pointed to a recent study that showed of the 85% of people who were satisfied with a store, only 40% came back. Another study found that 65% to 85% of people who shopped elsewhere were satisfied with the previous store. “So, it’s about building loyalty. And one of the best ways to make a customer loyal is with a brand. Brands are the best defense against pricing or copying. A brand is equity for your business,” Allman said. To help enforce this concept, the buying group used the convention to unveil its new integrated logo: CarpetsPlus/Color Tile, America’s Floor Store. With everything seemingly in place for the membership, Dunn said the big challenge now is to work through the downturn in business and grab a bigger piece of the shrinking pie. “One of the best ways to do that is to expand into the areas that are growing due to consumer demand, such as hard surface flooring. “And, above all,” he concluded, “we must stay people oriented, no matter how big or successful we become. The one great common denominator behind the great and successful companies is they are all people oriented.”