Hicksville, N.Y.—When laminate flooring first came to the U.S. in the mid 1990s, one of the fears expressed by mill executives was the category would follow the same path it had in Europe a decade earlier: starting out of the gate with a bang of consumer acceptance only to be bogged down in a price war and eventually become a commodity.

While price has certainly been an issue over the years, the segment has been able to avoid becoming a commodity. In part, because manufacturers who have committed themselves to being long-term players in the category have continually invested in research and design to create more stylish, high-end products while, at the same time, giving dealers the necessary tools—merchandising and educational—for selling these types of floors.

Most mill executives feel better made laminate floors begin to retail at $2.59 a square foot, though the high-end products are generally $3.49 and higher, with some even selling for above $5. Generally speaking, it is believed that to trade-up a customer will cost her an additional $300 to $500 depending on the product, since the overall installation cost will remain about the same, whether it is a low- or high-end floor.

In some cases the installation may actually be less expensive since some of the higher priced floors require less prep work and are easier and faster to lay down. “Distributors and dealers are seeing the value of selling better goods as opposed to low-end products,” noted Ken Riley, director of laminate flooring sales for BHK of America. “They are starting to realize and appreciate the value for the money, especially when the overall cost of the installation is considered.”

Dave Wilkerson, vice president of marketing for Shaw Industries’ Hard Surface division, agreed, and added, “The typical laminate sale averages 350 square feet. So, the cost to upsell does not cost much more money in terms of the total cost of the job. Yet there is a great deal of satisfaction gained by both retailer and consumer.”

Understanding margin dollars is also “extremely important,” added Rob Tarver, Wilsonart’s national accounts and new business development manager. “You have to sell a lot more $.99-per-square-foot product than you do one costing $3.99 to make the same amount of money. And, with less foot traffic entering stores, selling everyone the most you can is important.”

“There are two very important benefits in selling high-end products,” Wilkerson said. “From purely a financial standpoint, they create bigger ticket sales and more gross margin. But more importantly, the consumer gets a better product—visually and in the construction. These are the most authentic laminates available and help add value to the home. Plus, after it is installed, she’ll not only be happier with it, but glad she made the investment.”

“It all starts with satisfying her needs,” said Claes Wennerth, president and CEO of Alloc. “And the way to get her to understand why one floor costs more than another one is to go through the process and explain the differences and what they mean to her home and family.” He added, when it comes to flooring, especially laminate, the saying, “you get what you paid for” certainly rings true. “The differences between low- and high-end can be seen and felt in every aspect of the products’ construction.

“It starts at the top with the wearlayer, surface visual and feel,” Wennerth explained, “and continues on through to the core board used (such as a high density fiberboard with added treatments for moisture resistance), the material used at the bottom (needs to be the same as the top layer in order to make the product balanced), how the tongue-and-groove is constructed (beyond having a tight fit, but having some type of impregnation to repel spills), and the mechanical locking system used (it needs to be strong enough for the intended application, and easy to put together, yet easy to take out).

“Also,” he continued, “any added value components, such as having a pre-attached underlayment, also help differentiate the good from the better and the better from the best. “In most cases you can feel the difference,” added BHK’s Riley, “as the better-made products are heavier in hand, so the consumer can actually feel the value.”

“The most fundamental need,” said Wilsonart’s Tarver, “first and foremost is, a top quality product that is designed and serviced well. It is hard to sell high end if your product is not made with the best materials and serviced with the best distributors. Education is also critical when selling better goods.”

Riley agreed: “We train our distributors to teach the salesperson and keep them better informed, such as understanding how the warranties differ. We also give our dealers spiffs on the higher-end products to give them more incentive to sell them because once you make a few sales you start feeling comfortable with it.”

“If they do not understand the product’s features and benefits,” Tarver added, “they will shy away from it so as to avoid not knowing the answer in front of a customer.” “Education allows the salesperson to know the product,” Wennerth noted, “which allows him to take the customer through the process. This is why we have taken a three-step approach to not only train dealers but keep them up-to-date on new products and changes.”

Alloc uses a combination of a training manual, its own salespeople and distributors, and the Internet. “Our manual is a total learning guide—our bible. Our own, plus distributor salespeople, give continuous product knowledge, and our E-Learning tool is both a training piece and a 24/7 vehicle to educate oneself on the latest happenings. All this comes together to help the retailer.”

Wilkerson said Shaw, like other companies, works with retailers in many facets to help them improve themselves. On the educational front, beyond what others have mentioned, Shaw’s salesforce will soon be armed with an in-store training module specifically for laminate flooring. Presentations will begin the first part of next year.

This interactive presentation is the latest in the mill’s training tools and is similar to what it has done in other categories, except with a focus on laminate. “We recently did a similar one for wood,” he said, “and felt we needed one on laminates to show ways to trade up. We’re going to do one for tile next. “It explains the best ways to make an upgrade sell in a step-by-step process covering such topics as positioning, advantages, closing the sale, etc.,” Wilkerson continued.

“It explains our 5-Star selling system and allows participants to understand the differences in each level and what they mean to the consumer.” While education and construction are two key points in getting salespeople to sell up, how the product is displayed and handled in the store can be just as important. “If you are going to sell a high-end product,” they all said, “you must present it as a high-end product.”

“We’ve taken the approach to upgrade our displays,” said Riley, “to show a larger section of the product which gives her a better visual of all the great features—four-sided bevel edges, wide plank sizes, texture, etc. We also changed our advertising to reflect a more upper-end look. Showing the product in a high-end home helps makes the customer feel comfortable with it.”

“The display should be prominent and feature the best products in a categorized section,” Wilkerson said, “And ads need to tell her this is the best choice for your home. Just about everyone who buys new floor covering is do so to beautify her home, so show off the most beautiful products. Our display features large panels with product-specific lifestyle room scenes on the back, for example.”

Another way to attract attention to a high-end product is to install it in the store, presumably by the laminate display with that particular product or throughout the business. “Put it down in the most favorable condition,” he added, “because seeing is believing and this makes a great selling vehicle itself. It’s good investment and we work with dealers to make it happen.”

Officials believe the final pieces in looking and acting like a dealer who believes in selling high-end products is selection and availability. It starts with selection. Beyond having a wide assortment of the latest high-end, trend-setting designs, is to carry products in every price point.

“By displaying them all,” Wennerth explained, “you can go through the process of pointing out the differences between each level. You also need to have some lower-end goods so that you are not thought of as not giving your customers an option.” Wilkerson also feels dealers need to keep these products in their inventory because “there is an advantage in having prompt installation. It shows you have made a commitment to better goods.

“It all ties together,” he concluded, “properly displayed products, education and timely installation tells her you are committed to better service. This will make her comfortable in purchasing a more expensive item. And, once it’s in her home, make her glad she made the investment.”