By FCNews staff
LAS VEGAS—Despite tough business conditions throughout most of the country, those who participated in Surfaces 2008— both attendees and exhibitors— did not let it affect their attitudes when it came to looking ahead and preparing themselves for when better days return.

Beaulieu of America and Mannington Mills once again dominated the upstairs exhibit hall by occupying the market’s two largest spaces and both expressed nothing but positive news.

“We had our best market in the history of the company when it came to roll sales and samples placed,” said, Jeff Meadows, Beaulieu’s executive vice president. “We weren’t timid with our approach to the show and took the strategy that as the number three carpet mill we need to help solve problems for dealers because they come to Surfaces looking for answers. They are trying new things to position themselves for when business turns around, while also looking for ways to close every single sale right now because business in general is off. So we took an aggressive approach with a new retail program, branding strategy, displays and more and think we beat their expectations.”

Kim Holm, president of Mannington Mills’ residential division, noted the company also took a strong view when it came to Surfaces and fulfilling retailers’ expectations with the largest product launch in its history and it paid off. “I’m confident we sold at least what we sold last year and wouldn’t be surprised if it turns out to be more. It was a strong market overall with sales coming from across the board. Surfaces is a big deal for Mannington and we feel good coming home from it.”

Ken Freedman, director of sales for Faus, called Surfaces the company’s Super Bowl, and proclaimed, “we won. This was the best show we ever had. These are sophisticated dealers coming in who understand what is needed to protect their businesses.”

Taking a more philosophical approach was Roger Farabee, vice president of marketing for Quick•Step, who noted, attendee attitudes ran the gamut depending on what part of the country they came from or what part of the business they are focused in.

“But everyone is being realistic, in that they all know it is not an easy market and will continue to be tough, and they will continue to have to work hard to be successful. They also realize this is a cycle and are confident things will come around, especially by 2009 and especially in the remodel sector.”

While the overall mood was up and the majority of companies FCNews spoke with reported sales equal to or better than last year’s Surfaces, the general feeling by most was attendance was down for a second straight year.

Official figures were not available from Hanley Wood, Surfaces owner, at press time, but estimates by FCNews as well as from those surveyed put attendance for the industry’s 19th annual market down in the mid single digits compared to last year’s show.

Interestingly, the number of exhibitors has remained consistently above 1,000 since the event first topped that mark in 2005. What has allowed the number to remain steady has been a proliferation of new companies taking out booth space, and this year was no different as market officials said between 25% and 30% of the exhibitors were showing their wares for the first time in Sands Expo & Convention center here.

Active participants

Attendance may have been down but actual participation was higher than ever as those who did make the trip to Vegas came with the strategy of making sure their business was fully up to speed with new products, services, technology and best practices so that when the economy does start turning for the better they will be the ones ready to meet the demand.

One area reflecting this mindset of improving oneself was the participation in the market’s educational conference. Again, final figures were not available but based on pre-registration numbers actual participation in the four-dozen courses was stronger than ever. Dana Teague, show director, noted, “Evaluations are looking very strong, including for the six mini-sessions we added this year. These were very well received as it kept people close to the show floor during lunch.”

A number of the conference’s speakers, such as FCNews’ Bart Basi, author of the “Financial” column and Scott Perron, author of the “Retailer2Retailer” column, even had overflowing crowds at their sessions.

In addition she said a retailer tour organized by Hanley Wood sold out. Dealers taking part in this first-time event were bussed to three different successful flooring retail environments within Las Vegas to give them ideas to take back and incorporate into their businesses.

“Participants were able to see everything about these operations—from the parking lot to the back office areas—and learned some valuable insights to improve their operations.”

Low Key

With business conditions being the way they are, this year’s Surfaces had a more businesslike tone to it as most manufacturers opted to forgo the glitz that normally accompanies the Vegas show. Not everyone took the same approach as Mannington and Beaulieu when it came to massive introductions; instead they concentrated their efforts on either rounding out product collections or focusing on specific programs, services and qualities they felt could give them and their customers an edge.

Despite “the show being a little low key compared to years past,” Roland Thompson of Kehne’s Carpet One Floor and Home, Frederick, Md., noted, “I still had a chance to meet many educated people who are experts in their fields, and I never pass up a chance to learn and gain more knowledge.”

Even though Thompson’s store is part of Carpet One and had attended the buying group’s convention a few weeks earlier, he still attended Surfaces “looking for new products that I had not found in the Carpet One program. I ran across some very good products that I feel our customers will benefit from in the future.”
Being that Thompson is also an installer by trade, “I’m like a kid in the candy store when I get downstairs with all of those tools.”

Upgrading and getting ready

Like Thomspon, those who attended Surfaces came with a specific purpose of finding things—whether they be floor covering products, accessories, services, technology aids such as computer software programs, tools or just education—to help them position their businesses for when the economy makes a turn for the better.

For many it meant obtaining items that could help them upgrade their operations to service a higher end clientele. Kevin Twohig, owner of Twohig Flooring America in Fond du Lac, Wis., said his second-generation-family business has been selling more high- nd products than ever. Because of this, the store was recently remodeled by moving some of the upper-end products and displays to the front, which in turn “has created more sales than ever. We’re even expanding our offerings.”

And that was one of the reasons he attended Surfaces—to seek out some high-end wool products. “We’ve also been emphasizing how professional installation and product quality helps in making a more satisfied customer.”

John Ford, president of Advantage Flooring Services, also attended Surfaces to help improve his business. Only he came to find new computer software and installation equipment, saying “the time is right to upgrade.”

Gary Cissell, director of flooring for Nebraska Furniture Mart, said his team came to Surfaces with a specific plan and he was pleased to see that “vendors were well prepared to meet our needs with different products, services and promotions.”

Quality not quantity…

While this has often been the mantra for markets throughout history, Surfaces ’08 could mark the first time it was a universal truth. Exhibitors large and small, upstairs and downstairs consistently remarked how the quality of the attendee was far superior than they normally see at a market and this helped to offset the lower attendance figures.

“We definitely see traffic as off, but the caliber of people is up,” said Norman Marks, president of The Natural Carpet Co. “Our key clientele is here, and it was very beneficial for us to update them with our new products.”
“There are less people here this year, but the ones that are here are all greater quality,” said Thilo Hessler, president of molding supplier Versatrim. “Everyone that truly buys and makes the big decisions is still in attendance.”

John Kocemba, vice president of marketing for Torly’s, which used Surfaces to kick off its 20th anniversary and was touting the company’s store-within-a-store selling concept, said those coming to the booth “understood and appreciated what we are trying to do. They want something that will not only differentiate themselves and give them a competitive advantage but give them a captive audience in their stores. And they see the opportunity this type of system affords them. What’s been fascinating is the amount of major dealers that have come by, but we need to be selective to make sure it will get properly serviced.”

“Traffic was definitely down, but the people here are the serious buyers so I’m not sure sales were heavily affected,” added Laurie Osmondson of National Carpet Equipment.

This combination of slower traffic but a better quality attendee allowed exhibitors the opportunity to attend to the needs of their better clients, noted Marks. “We had more time to focus on our good clients rather than be bombarded by a lot of people that are sort of interested in just looking at things.”

Kyle Evans, manager of hardwood division for Faus, added, “We’ve noticed there’s been a sort of weeding out of people this year; the ones here are here to buy.”