Price-conscious consumers are driving prices lower in laminate flooring, industry executives say, and even as manufacturers come out with better, more realistic visuals, many consumers are willing to compromise the look and quality because of uncertainties in the economy.

“You try to tell the story to consumers about why they should do business with our company and why they should buy a certain product that is value added, but now more customers are making their buying decision based solely on price,” said Darren Hearns, president of Great Lakes Carpet & Tile, Lady Lake, Fla. “With more and more retailers becoming desperate to survive, it seems like the laminate pricing has gotten lower and lower. This has also put pressure on the manufacturers to be more competitive with their pricing, so now you are seeing some laminate in the low 60-cent range with a sale price below $4 a square foot installed for entry level.”

Dave Snedeker, flooring buyer for Nebraska Furniture Mart in Omaha, said the trend is the proverbial hourglass effect. “The laminate business seems to be headed in two directions: cheap and best goods. The middle price points have eroded to almost nothing. It needs to be below $1.49 or better goods.”

Sam O’Krent, president of O’Krent Abbey Flooring in Houston, agreed. “It’s either low end or high. That’s the split; the middle is gone.”

Mannington said its price points are typically segmented as follows: good/initial price point: $0.89 to $1.49 per square foot; better/mid price point: $1.59 to $1.79; and best/upper end price point: $1.89 to $2.99 and higher. “Products trade up based on visual, embossing, thickness and warranty level,” said David Sheehan, vice president of resilient and laminate business for Mannington.

But each market is different. Pierce Flooring & Design, which operates eight stores in six Montana cities, finds the $.99 mark is still pretty important to the consumer. “The bulk of our business is in the $1.29-to-$1.59 range, with $1.29 being the sweet spot because we have a couple of specific products in that range,” said Will Osborne, operations manager for Pierce’s residential division. “For us the higher-end product and special order business has not been real strong. We’re seeing more people opting for hardwood [at that price point].”

Base grade continues to be under pressure and the bottom continues to get lower. “The higher-end products appear to be holding onto their price points as consumers seem to appreciate the better quality, styling and design those products bring,” said Eric Erickson, laminate category manager for Shaw Industries.

Roger Farabee, senior vice president, marketing, Unilin Flooring, Mohawk Hard Surfaces, said price points are continuing to compress with the high end migrating to the middle price point ranges and the low end remaining very competitive for entry-level, 7 mm products. “This is being driven by consumers spending less for remodeling projects,” he said. “They are value engineering these projects to squeeze as much as possible out of their limited budgets.”