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Lew Migliore, the Industry's Troubleshooter and President of LGM & Associates Technical Flooring Services. LGM specializes in the practice of consulting on and trouble shooting all flooring related complaints, problems, and performance issues having experts in every category as well as related educational services.



3/2/2006
10:50:02 AM 
Claims Policies On Rugs

Just back from Surfaces and it was the best ever, in my opinion. The seminars we conducted were the best attended since we’ve been doing this and the general attendance was excellent; at times you couldn’t move on the lower show floor and there were lines waiting to register on Thursday afternoon. Everyone I spoke with said it was outstanding. In fact, one retailer told me he went looking for some new wood and hard surface products and found just what he wanted on the lower level. As he put it, “that’s where the action is at.”

There were also some interesting conversations I had with dealers either in my seminars or on the show floor. One issue concerned a rug which was purchased four months ago from a retailer. It was a light colored wool product that the consumer wanted to return because she said it got dirty too easy. Never mind that the consumer never tried to clean it nor did she ask the dealer for help on how to clean or maintain it.

The retailer told her he could not take the rug back just because it was dirty and explained to her that it would be like taking back a dirty article of clothing—not the exact quote he gave me, but close enough. Soiling of a rug is not a reason to return it unless you have a policy stating you’ll take any rug back after an extended period of use. I can’t imagine anyone would do this, a used rug is just that.

Since this is a cash-and-carry item, for the most part, and if it’s from stock, I can see telling a consumer she can try the rug in her home to see if she likes it. The dealer could suggest taking it to her home to make sure it worked for her. If she is a serious buyer, you’d have to determine that by properly qualifying her, you could render the service of taking out a few rugs and see if they’re suited for the décor of the home. I’m sure many of you already do this. This would also help you make the sale and give you a unique selling proposition.

Is there a claims policy for rugs? Certainly, as there is for all the flooring products you offer. You have to make sure you know what that is with your suppliers but common sense will tell you if there is a visible flaw or defect then it can be returned for credit. If a structural integrity problem manifests itself after it is put into service, which is a latent defect, then replacement is justified.

However, if the compromise to the structural integrity of the rug is due to use or abuse or if it is soiled from use and poor maintenance, a claim is not justified. This would be the same as a wall-to-wall carpet with one distinct difference: You can carry a rug out and replace it but you can’t do the same with an installed broadloom.

Some very expensive imported hand-made rugs will hold their value or even increase and there is a trade in that segment of the market. Inexpensive or reasonably priced machine-made rugs generally don’t hold the same value and are dispensable or can be passed on, sold or moved to another location in the house as this is a portable floor covering material.

Despite there being a claims policy from your supplier on any of the rugs you sell, you may determine that you want to invoke some additional coverage of your own. If you do a large enough trade in rugs you may have an opportunity to sell used ones, take them in trade or get into the business of cleaning them. This last one is a market you might want to explore through the Institute of Inspection, Cleaning And Restoration Certification (IICRC). It has a new rug cleaning school that allows you to be in this business without a huge investment in machinery or space.

Rugs, like any other textile floor covering material, come in different performance categories and qualities. Though they are just laid in place they have to be maintained and cleaned, especially if they are in high traffic areas. Defects in this product are easy to catch and return of the item is easy as well. But, when they are abused, uncared for or disliked for some reason other than being legitimately defective, you can draw the line on replacing them—and you should.

If you have a claims or return policy on rugs it should be clearly stated on your invoice or supplied with the purchase, otherwise you leave the door open for return, argument, interpretation or a situation in which you might get taken advantage of.



Edited by Admin 3/2/2006
10:50:52 AM

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