It’s a Changing World!
Wow. What a year this has been. Fortunately, even with all the turmoil in the news, we have seen some encouraging signs. New housing starts are up, home prices are up, and some in the flooring industry are reporting banner profits. The complexion of the industry is evolving as new players come into the marketplace. We are constantly bombarded with solicitations from new importer/exporters, brokers, foreign manufacturers, etc.. The consumer has many more options at their disposal when it comes to flooring selection. The Big Box Store players are gobbling up a larger share of the pie, as are flooring “superstores” and “liquidators”. So where does that leave the average flooring retailer or contractor? How do they compete in an environment where it seems to have become all about price ? You first need to ask yourself, “What makes my business different, and why would my customers buy here, instead of the superstore down the street?”
Three major factors come to mind; Knowledge, Service, Selection
Knowledge: Make sure you and your staff are thoroughly familiar with the products you carry, as well as the products you compete against. Keep abreast of what’s new. Are you reading the latest news and publications related to flooring? Here’s a biggie; know the industry’s best practices for installation, and problem solving. We field calls relating to customer service issues, and almost every one of them can be traced to poor installation practices, or improper flooring selection for the given application. Proper knowledge can really make you shine when the customer compares their experience in your store versus the one they had down the street.
Service: This is huge. Differentiate your business from your competitors by being a “One Stop Shop”. Big box stores and their ilk don’t offer in-house installation. They typically refer the purchaser to a list of contractors they recommend. Now the consumer must coordinate with two entities, often resulting in major issues if there are product complaints, delivery problems, etc.. If you have the ability to offer the full package (product and labor), you are on your way to winning the battle. Many shops have employees to provide labor. Others sub-contract the installation. If you utilize the latter, make sure your installer is one who will make you look good to your customer. The guy who gives you the lowest labor rate, might not be the knowledgeable pro that is going to eliminate costly problems before they arise. Remember, we already know that someone out there is cheaper ; we’re going to offer a better VALUE. Align yourself with quality people, and it will pay dividends.
Selection: Make sure that you are representing products that will meet most any application. Review your product offerings with your supplier. Make sure you aren’t leaving any gaping holes for your competition to walk through. OFFER SOMETHING DIFFERENT. Going toe-to-toe with a giant is a losing proposition. A showroom full of “me-too” products at a higher price than your competition is a recipe for a slow death. Offer products they wont see at every big box store. Some manufacturers have married themselves to these multi-location giants, and the rest of the retailers cannot purchase at nearly the same levels. Find some products that offer excellent value in every segment of the market without boring your customer with the same thing they’ve seen while shopping elsewhere.
We are here to partner with our customers, and will do everything we can to assist with all of the above. We cannot be everything to everyone, but we recognize that without our customer’s success, we do not succeed.
Give us a call if we can be of any service.
Best of luck, and God Bless.