By Milton Goodwin Vice president, laminate and ceramic, Armstrong
Driving trade-up is one of retail’s biggest challenges, but one the industry overall has actually had more success within the last couple of years. Here’s what we’re finding:

Many manufacturers have gone to a very clear product hierarchy. Retailers should clearly call out the key attributes for your customers that drive value. Show them how true realistic looks differ by price point. Premium laminates often offer the most realistic looks on the market, often confused with their real wood counterparts. Inexpensive laminates can’t compete in terms of visual clarity, realism or quality. We believe consumers are doing more exploration and need the facts to make decisions they are comfortable with.

Retailers continue to market laminate as a hardwood alternative with better performance characteristics when it comes to ease of maintenance and scratch and indentation resistance. Some market laminate as a value proposition to upscale hardwood species that are more expensive, others market it for the visual as a trade-up from other surfaces like vinyl or carpet.

When adding new products, we are clearly marketing the trade up and pricing for value. We’ve targeted our laminate to have the best price/value equation of any product. At a lower price point we launched Armstrong Illusions and Bruce Chelsea Park, each with incredible realism but less of a cost step.

Other thoughts for retailers:

1. Use the Web as an educational tool to drive trade-up.

2. Use engaging merchandising displays that are easy to navigate and demonstrate sensitivity to customer preferences. The displays must do more than simply present goods; they must help increase sales while maintaining a focus on stylish, high-quality products to visually show the trade-up story.

3. Give customers variety. Even if they just come in for specific items, give people a chance to view all products in a category— or across categories—in your store.

4. Use the power of brands, like Armstrong and Bruce, to distinguish quality products and support the trade-up story. Great brands are tremendous assets to retailers; they help bring people into the store. Remember, business conditions vary, but some aspects of business, including brand dynamics, remain constant.

Retailers make a sale when they communicate a value proposition. Customers put their money on the counter when they accept a value proposition. For flooring purchases, an activity which most consumers have infrequent experience and low expertise, a meaningful brand says, “Here is a product in which you can have confidence.”