By Sarah Zimmerman
ORLANDO, FLA.—Mohawk’s Floorscapes continued focus on partnership and profitability was apparent at its recent 10th anniversary tagged “Solutions: Today’s challenges…tomorrow’s success.” And, though spirits and business among dealers seemed brighter than expected— attendance numbers reached 750 total out of 350 dealer members with 500 storefronts—the word recession was prevalent, and Jeff Loberbaum, chairman and CEO of Mohawk Industries, and Manny Llerena, Mohawk’s vice president of retail marketing, cut straight to business, telling members there is a 10 point difference in gross margins between the top 20% of stores and the average flooring retailer.

“The difference in an extra 10 points of margin isn’t magic,” Llerena said. “It’s good ideas, practical application and intense focus, which is what Floorscapes is all about—not just a selling system, but a way of helping dealers succeed.”

Loberbaum continued, stating though the industry— and country as a whole— has been declared in a recession all of 2008, there are greener pastures to come. He predicted a 3% economic increase in the second half of ’09, and said, “the answers to many of your problems are right here, sitting next to you. Take advantage of these.”

To that end, the network presented dealers with new products, programs and strategies to increase “not only sales, but total profitability,” Llerena reaffirmed, emphasizing the idea of value. “Our industry is notorious for focusing on price, especially in tough times. But there’s a very big penalty to the store for operating like this,” he said, pointing out selling based on price can take as much as 33% more sales to generate the same profit dollars, according to Mohawk research.

“Adjusted strategies create better long-term business,” Loberbaum explained, “which is why we’ve structured our program and product introductions to do just that.”

Llerena added, “You cannot simply cut or save your way out of a recession. You must come up with ways to grow your sales and grow your profits— value equals profits.”

Continuous Concept Renewal

As a core principal behind Mohawk Floorscapes, every product and program is subject to routine review and scrutiny, and Mohawk provides dealers with insight on all of it. A perfect example of this is the revitalization and re-launch of Mohawk’s CustomWeave brand, which is exclusive to Floorscapes dealers.

Designed to fit in to current store layouts, the program is aimed at the higher-end, fashion-forward consumer and offers retailers an expanded 90-day customer satisfaction guarantee, 20-year warranty package, special retail sales incentives, exclusive product assortment and strong Web and marketing support.

And, maybe most exciting, Mohawk has partnered with HGTV personality and interior designer Taniya Nayak of “Designed to Sell Washington D.C.,” who will be the exclusive spokesperson for the CustomWeave line.

“As soon as I saw the styles, colors and feeling—fashion-forward comfort—of the line, I knew it was an automatic match,” Nayak said. “The CustomWeave Boutique is a very welcoming place for the consumer to come scratch her design, fashion itch.”

Some other standout product offerings at the show included the extended SmartStrand color palette—now featuring 62 colors and six new styles; two new soft fiber introductions— EverStrand XtraSoft and UltraStrand UltraSoft; a new information kiosk on Mohawk’s more than 150 new hardwood SKUs from 2008; a new emphasis on Scotchgard; two new laminate products—Venti Hills and Montclair, and three new ceramic lines—Giardino, Caldera Glazed Ceramic and Seguro Glazed Porcelain.

Along with the new product portfolio, Floorscapes dealers were given increased support through new marketing services, educational offerings and networking opportunities. From a benchmarking meeting, to a more professional and proficient Web presence, to new advertising tools, to enhanced training resources, to stronger-than-ever finance programs, to a “dealers only” lounge, attendees were almost promised profitability in ’09.

“Strong support tools are critical for retailers in the current business environment, and Mohawk is introducing a number of programs designed to streamline dealer operations and allow stores to focus on customer sales and overall profitability,” Llerena explained.

Members mentions

And, though the undercurrent was a bit apprehensive, members definitely noticed and took advantage of all the opportunities presented, calling this year’s meeting the best yet.

“It’s very encouraging to see that Mohawk is still behind its products and strategies, especially in the down economy,” said Mark McDaniel of Carpet Concepts in Hendersonville, Tenn., who was most impressed with the CustomWeave Boutique, education and support. “They really want to see us succeed.”

Jon Moullet of The Flooring Place in Bozeman, Mt., agreed, donning this year’s show “the best product offerings live seen in a long time,” specifically naming CustomWeave and Columbia Hardwood. A Floorscapes member for eight years, and currently on the board, Moullet said it’s easy to see how aligning himself with the group has made for instant profitability. “They rely on their members and are extremely helpful in creating success stories.”

A fairly new member, Dan Majetich, general manager and part owner of Couture Floors in Boeme, Tex., said he and his partners came to their third show with three expectations— learning more about benchmarking, networking and seeing new vendor partners and products— all of which were met. He also noted his appreciation for Mohawk’s honesty moving forward in the down market.

“Mohawk’s leadership came right out and said we have a tough road ahead, but as a group we will persevere. Mohawk offers us a great number of resources, and if you utilize these, you can attest to how the program is helping make your business a success,” he explained. “If you are not taking advantage of the partnership, you should start.”