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FLOORS
june/july 2014 | vol 32 no 03 www.flooringmagazine.com.au
Industry News
Special features
Regular Reports
FrontCover
04 Shaw Contract Group appoints healthcare flooring specialist
14 Buying Groups and Franchises
22 Airstep Retailer of the Month: Reliance Carpet, Camberwell, Victoria
01 Shaw Contract Group
06 New design focused website for Gerflor 08 Mohawk and Cavalier Bremworth announce agreement 10 Makinex wins Best New Product award
24 Carpet & Rugs 32 Laminate Flooring 34 LVT
30 Business 38 Software 42 Alternative Flooring 44 PICFloors (Preparation, Installation and Care) 49 Surfaces Today 54 Exhibition Calendar Advertisers Index Subscribe Now
Flooring June/July 2014 3
News Shaw Contract Group appoints healthcare flooring specialist Shaw Contract Group commercial flooring has appointed Aaron Martin to specialise in servicing healthcare customers seeking specialist knowledge and complete flooring solutions. Filling the new position of Strategic Accounts Director - Health, Aaron brings to Shaw
over 26 years experience in the flooring industry. “With experience across all facets of flooring from installation through to product development and specialist experience in the resilient category we are very pleased to have Aaron on board,” Shaw Contract Group Managing Director, Denis Peltier said. “Based in Melbourne, but servicing customers throughout Australia, Aaron will work across our expanding resilient collections and extensive carpet tile and broadloom collections designed specifically for healthcare. “We are looking forward to being able to offer our
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4 Flooring June/July 2014
customers a specialist that can work with them to deliver a complete healthcare flooring solution,” he said. According to Aaron, Shaw Contract Group’s extensive range and the ability to focus on one segment attracted him to the role.
“The healthcare market segment has been a keen focus of mine over the last six years and to now be able to offer such a broad spectrum of product as a total flooring solution to this market is quite exciting,” Aaron said.
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News New design focused website for Gerflor
Designed to inspire, the new Gerflor Australasia website – http://www.gerflor.com. au – creates a visual feast of colours, designs and project photographs to ignite the creative juices of everyone from the design professional to a budget conscious home renovator. Compatible with smartphones and tablets, the website provides instant access to everything from photos and project references to test certificates and maintenance instructions. Gerflor Managing Director, Chris Low said the new site reflected the Gerflor Group’s image and strengthened its position as a leader in
innovation and decoration. “We are a brand recognised for bringing progressive and innovative flooring solutions to the local market. It is important that our window to the world, our website, measures up to the expectations that surround that reputation,” Mr Low said. “The launch of this new site means design professionals can access the virtual library from any computer. The opportunity to customise their own personalised, virtual library and ‘pin’ interesting content into their own files will be a great boost for anyone working in the design space,” he said.
Godfrey Hirst congratulates winners Congratulations to McGraths Hill Carpet Court (NSW) and Central Carpet Court (WA) on winning $5,000 each from Godfrey Hirst and Feltex Carpets for their special purchases at The Pathway to Success Carpet Court 2014 National Conference at Hamilton Island. Godfrey Hirst wishes to thank all Carpet Court members who purchased a Feltex Carpets, Godfrey Hirst Carpets and/or Godfrey Hirst Floors special at what was a fantastic conference.
6 Flooring June/July 2014
Central Carpet Court, WA.
McGraths Hill Carpet Court, NSW.
Timber Queensland releases 30-plus revised TDS Peak industry body Timber Queensland has completed a major revision of 30 plus technical data sheets (TDS), which provide timber related advice developed in Queensland for Queensland application. Timber Queensland’s CEO Rod McInnes said the TDS provide expert, straight-forward and accurate advice making the selection, specification, and use of timber products much easier. “TQ’s TDS are the go-to documents for architects, building designers, engineers, certifiers, builders and handymen who need timber related advice,” he said. “They’re also all referenced by building
authorities and Australia’s leading timber processors, fabricators and manufacturers - these are highly respected and sought after publications,” he added. “The review, undertaken by respected timber engineer and Timber Queensland’s Manager Timber Application and Use, Colin MacKenzie, ensures the TDS reflect Australian Standards, state and national Building Codes and current best practice.” TDS topics include residential timber decks and fences, timber floors recommended installation practices, finishes for exterior timber and protecting buildings from subterranean termites.
Labels under ACCC spotlight The Australian Competition and Consumer Commission (ACCC) has published new guidance to assist businesses in complying with the Australian Consumer Law (ACL) when making country of origin claims. “Country of origin labels are valuable tools that allow consumers to make informed choices and let businesses compete fairly,” ACCC chairman, Rod Sims, said. “Many consumers specifically seek out, or are willing to pay a premium for, Australian produce, or products that are made in Australia. This information assists manufacturers, wholesalers, importers, retailers, advertisers and anyone else who may be making country of origin representations, in deciding what claims are appropriate for their products.” “Any claim that is likely to mislead consumers about the
origin of a product will also breach the law. Credence claims are a priority area for the ACCC, particularly those with the potential to adversely impact the competitive process and small businesses,” Sims said. Businesses making false or misleading representations could face penalties of up to $1.1 million under the ACL. As well as enforcement, the ACCC is providing manufacturers, importers and retailers with guidance on complying with the law. The ACCC is also urging packaging designers to take special care when using graphics, such as logos, symbol,s and pictures, as they can be just as forceful and effective as written representations. The revised guide on country of origin labelling is available at www.accc.gov. au.
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News Cavalier Bremworth new premises Cavalier Bremworth’s Wellington, NZ operation has relocated to new tradeonly showroom premises in Tennyson St, Wellington City. These premises are now home to the sales teams for Ontera Modular Carpets, Cavalier Bremworth and Norman Ellison Carpets, who all work together to
offer a comprehensive solution for both contract and residential clients in the lower North Island and Upper South Island of New Zealand. For the first time the team has a display showroom and meeting room for presentations and client viewings.
Cavalier Carpets CEO Brent Wollaston with two guests at the opening party of the new Wellington premises.
Mohawk and Cavalier Bremworth announce agreement Mohawk Flooring and Cavalier Bremworth have announced that the companies are joining forces to bring Mohawk’s leading premium soft nylon as well as its PET products made with the Continuum Process to Carpet Court Australia. Cavalier Bremworth’s extensive sales, logistical and customer support combined with Mohawk’s innovative manufacturing technologies will offer Carpet Court Australia localised service and world-class products. “We’re excited about the alliance of these two iconic businesses, which will deliver a superior level of service, product exclusivity and support to the Carpet Court membership as well as deliver innovative products creating exceptional value for our customers,” said Carpet Court Australia CEO Andrew Brand. Mohawk, a leading global flooring manufacturer that creates products to enhance residential spaces around the world, is continually looking for strategic alliances that
8 Flooring June/July 2014
help deliver its innovative technologies worldwide. “Aligning with Cavalier Bremworth – a company with a reputation of quality, service and integrity – is a perfect collaboration as we continue to develop our Australian business,” said Michel Vermette, senior vice president of Mohawk’s international business. Cavalier Bremworth is a major Australasia based carpet maker with a rich 55year history of offering high quality wool and synthetic carpets to the New Zealand and Australian markets. “At the core of this alliance is a commitment to offering Carpet Court Australia an unparalleled level of service,” said Cavalier Bremworth CEO Brent Wollaston. “Mohawk has developed a global reputation for its groundbreaking product innovations, and we are enthusiastic about working with the largest floorcovering company in the world, leveraging both Mohawk and Cavalier Bremworth’s distinct areas of expertise.”
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News Makinex wins Best New Product award The Powered Hand Truck PHT140, a universal materials handling solution developed by Makinex was voted the Best New Product during the HRIA Convention on the Gold Coast, 29 April to 2 May, 2014. The PHT-140 enables one person operation, eliminating awkward and dangerous lifts and thus reducing back injury. Introduced in late 2013, the PHT-140 gained quick market acceptance, particularly in the hire and rental industry where safety is paramount. Makinex entered the PHT-140 into the Best New Product Awards as it is a unique product enabling lift and load of equipment weighing up to 140kg onto benchtops and vehicles. “We are thrilled to have won such a great award,
considering the quality of entrants in the competition,” stated National Sales Manager, Paul Weaver. Makinex, known for the design of innovative construction products, launched the PHT-140 in late December. Though only recently released to market, it has undergone further developments to improve the design and
functionality. In addition to the original hook and fork attachment, a strap frame and glass sucker attachment has been developed, to broaden the product’s utilisation across many applications.
Upgraded VDF website adds value As part of its continuous improvement strategy, Victorian Designer Floors has just updated its website to better add value to its customers. New features of the website include a translation option that enables multicultural and international customers to view in a language of their choice; a new product brochure; testimonials from satisfied customers and a mobile version of the website for smart phone and i-pad users. According to John Beleski, Director of Victorian Designer Floors: “We welcome feedback from users and visitors to the website especially constructive suggestions on how we can improve our value creation and customer service capabilities. “We are constantly in contact with our customers updating them on what is new and how they can benefit from our expanded products and services.”
SE QLD distributor appointed for DuraCore DuraCore has welcomed Marques Flooring to its team of distributors. Marques Flooring, located in Nerang on the Gold Coast, is now stocking DuraCore’s Moisture Proof, which is manufactured in Australia. “Josh and his staff have completed their training in the DuraCore range of products and are looking forward to
10 Flooring June/July 2014
supporting their customers and sharing their extensive knowledge of these tried and tested products,” said DuraCore’s director Andrew McLeay. “Marques Flooring is embracing the DuraCore range and the confidence the products give to their customers – not to mention the savings.”
Underlay King continues growth Underlay King has gone from strength to strength since the opening of its new foam underlay plant in Victoria last year. With a high demand for its products, the company will be expanding its operations and opening a new Underlay King manufacturing plant in Sydney in 2017. Expansion into Queensland is expected to take place shortly after that. The new plant will be designed and manufactured in Australia by a Melbourne based engineering company, and will have fully automated machinery and the latest technology available. It will have the capacity to manufacture 5000 rolls per day allowing Underlay King to compete against overseas imports that affect
local manufacturing. The company aims to keep Australians in the work force, provide the highest quality product by worldwide standards, the best customer service and offer the best prices in town. Currently stock is available for both domestic and commercial use. “We are committed to providing prompt and efficient delivery service throughout Australia, offering next day delivery to metro areas,” said a spokesperson for Underlay King. “Our friendly and professional staff and representatives are more than happy to assist in product selection.” Underlay King guarantees all its products for the life of the carpet.
Ardex welcomes back Brian Powley “Brian Powley worked for Ardex and its licenced distributor Vibro for 17 years. We welcome him back to bolster our Queensland team,” said Ardex’s Ivan Zrilic. “I am sure that there are many customer who remember Brian’s enthusiasm and dedication to the flooring industry. He will be a welcomed addition to the Ardex team as we continue to grow our range of cement toppings, waterproofing and adhesives specifically designed for the flooring industry.” Brian is operating in a technical sales role.
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News Kennards Hire expands in New Zealand Continuing its growth throughout New Zealand, Kennards Hire has introduced two specialist branches – Concrete Care and Lift & Shift, to reinforce its service and equipment range at East Tamaki. The two specialist branches are a part of the larger Kennards Hire specialist network in Australia that includes Traffic, Rail, and Pump & Power, and Test & Measure. The specialist branches service industrial and trade sectors with a range of professional equipment and expertise. Kennards Hire Lift & Shift offers equipment to help move heavy loads, access tight spaces, manoeuvre bulky goods, and shift high volumes of material efficiently. They boast a highly trained team of people with an abundance of technical advice and specialised equipment. Concrete Care is a specialist business that caters to surface preparation jobs and also provides equipment and service for concrete cutting and sawing, drilling, surface cleaning, concrete placement, demolitions, and diamond products.
Notable examples of the specialist work include a job in February 2013, in Moorebank, NSW, where Concrete Care hired a ride-on shot blaster to The Superseal Group to help them prepare 2400 m2 of concrete for a new topping. Tight deadlines were set for the job and the wide 40cm blast width of the ride-on unit enabled it to be completed efficiently. More recently, Kennards Hire Lift & Shift equipment was used to remove over 110 m3 of rock from a 600 m2 man-made lake in Brisbane, Queensland. Kennards Hire provided five portable sixmetre conveyor belts, a two-tonne tipper truck as well as a flexdrive pump to drain the lake and complete the project. While the specialist Concrete Care and Lift & Shift equipment has only been introduced to the general hire branch at East Tamaki, New Zealand, the increasing demand for specialist equipment in Australia suggests the network will continue to grow through New Zealand with stand-alone branches servicing new areas and industries.
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New look website for Kenbrock Flooring Kenbrock Flooring has announce that its new look website has gone live at www. kenbrockflooring.com.au. The Kenbrock website has been completely redesigned and includes the very latest colours and designs in residential and commercial LVT, and commercial sheet vinyl. The new website also showcases the relaunch of Kenbrock Kinetics rubber flooring with a unique Design It Yourself feature where you can create your own matrix design from a colour bank of on trend colours. In addition to this, the Kenbrock Design Centre provides a forum where users can look at 100+ LVT colours and designs in a series of interactive room settings. Complete with all the relevant technical information, this new website will assist all users in finding the right product for the right installation.
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BuyingGroups&Franchises
Five more members for Choices Choices Flooring welcomes five new members to the family. Karratha
Anne and Kevin Clark were running their own business called Pilbara Tiles & Carpets, before becoming a Choices Flooring store in Karratha (WA). With a passion for renovating, Anne and Kevin drew inspiration for their own projects from shows such as Selling Houses Australia (Lifestyle Channel, Foxtel). It was Choices Flooring’s strong relationship with the program that first attracted Anne and Kevin to join the Choices Flooring family. Things moved very quickly from there, as Anne and Kevin became more and more excited about transforming their business into a Choices Flooring store. In May, it all became a reality with Choices Flooring Karratha opening its doors. The professionalism and support provided by Choices Flooring’s Central Office has given Anne and Kevin the confidence to now focus their attention on building the commercial side of their business.. “The Choices Flooring central office team are highly motivated and professional. Their support from our first inquiry into becoming a member, through to the store fit-out, has been first class. We could not have asked for anything more,” said Anne and Kevin.
many years, there was no doubt in their minds that their own business venture would be with Choices Flooring. “Over my years working as Accounts Manager at Choices Flooring Keswick, Unley and David McLeay, I have seen the group continue to evolve and strive for improvement, which is extremely exciting,” said Suzy. “With a strong proven brand, established relationships with major suppliers plus on-going training and support from central office, we are excited to develop Choices Flooring Unley into a profitable, inspiring and innovative business.”
“With a strong proven brand, established relationships with major suppliers plus on-going training and support from central office, we are excited to develop Choices Flooring Unley into a profitable, inspiring and innovative business.”
Unley
After over 18 years’ combined experience in the retail industry, Suzy and Attila Keszler were ready to take on their own business venture. As Suzy had worked collaboratively with three of Choice Flooring’s South Australian stores for
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14 Flooring June/July 2014
Capalaba
Moving over 1,800km is a bold move for anyone; however, it was one Samantha and Dragan Levanic were happy to make in order to open their own Choices Flooring store. With over 30 years’ experience in the flooring industry, Dragan was first attracted to Choices Flooring because of its professionalism and welcoming attitude. “We were, and continue to be, very impressed with Choices Flooring’s professionalism and drive to maintain its position as Australia’s number one retail flooring provider,” said Dragan. Since making the move from Melbourne to sunny Queensland to open their store in Capalaba, they remain focused on establishing themselves within the local community.
“We are looking forward to concentrating on creating a successful store and building on local relationships, with the confidence of knowing that everything else is under control thanks to Choices Flooring’s dedicated team at Central Office,” said Samantha.
Southern Highlands
After working in the retail industry for over 33 years, Rod Preston is now the proud owner of the new Choices Flooring store in Southern Highlands (NSW). Rod and his store manager, Peter de Hosson, were very excited to join the Choices Flooring family and embrace the latest technological innovation, the Inspiration Station, into their new showroom to give them a clear advantage over their competitors, as they strive to be the number one flooring retailer within the Southern Highlands area “The sheer cleverness of the management team and staff at Choices Flooring’s central office is second to none. The innovative approach to conducting business with the new showroom modelling is the envy of the industry,” said Rod. “Peter and I love to embrace technology and the features within our new showroom, plus the design provides the perfect environment for an inspiring and overall positive customer experience that clearly differentiates us from competitors.”
Dubbo Evolution
Choices Flooring Dubbo (NSW) has recently undergone the group’s new Store Evolution Program – a showroom fit-out for Choices Flooring members that is the envy of all others within the flooring retail industry. Choices Flooring Dubbo now features new innovations in technology, such as the Inspiration Station, in order to inspire customers from the moment they step inside the store. To celebrate the new showroom design, Choices Flooring Dubbo held a re-opening last month, with family, friends, clients and media in attendance to support the store’s recent success and the start of a new era for owners Steve and Donna O’Brien.
n i e r o t s newpalaba Ca
Another Welcome Addition to the
Choices Flooring Family
Choices Flooring is proud to welcome Samantha and Dragan Levanic into the Choices Flooring family. In May 2014, Samantha and Dragan opened their Choices Flooring store in Capalaba (QLD). With the latest technological innovation, their store inspires customers from the moment they step inside. Samantha and Dragan are extremely proud to be part of the Choices Flooring family.
“We are very impressed with Choices Flooring’s professionalism and drive to maintain their position as Australia’s number one retail flooring provider. We are looking forward to concentrating on creating a successful store and building on local relationships, with confidence that everything else is under control thanks to Choices Flooring’s dedicated team at Central Office.” For a strictly confidential discussion about the future direction of your business, please contact: Andrew Lewis Chief Executive Officer Mobile: 0400 400 036 Email: alewis@choicesflooring.com.au
Tim Drew Group Manager - Retail Development Mobile: 0425 751 756 Email: tdrew@choicesflooring.com.au
choicesflooring.com.au
BuyingGroups&Franchises
10 things you should have in your lease By Corinne Attard, Holman Webb Lawyers A lease is critical in any retail business. But, in franchising, there are some extra things to consider with the lease other than the usual rent, outgoings and commercial clauses. Leases can be held in the name of the franchisor or the franchisee as tenant. Whether your franchisor is negotiating with the landlord or you are doing it directly or you are taking over an existing business and lease, here is the checklist for the 10 top points to look out for.
1.Long enough term
It is important to have a lease term (or potential lease term with options) to match the franchise term. Your bank will also want to see a long enough term. The best outcome is for the dates of both franchise agreement and lease to coincide although this is not always possible. Sometimes leases end early and the franchise agreement can provide for alternative premises to be found to relocate the business and for termination of the franchise if suitable premises are not found in a reasonable time.
If you are buying an existing business make sure there is enough lease term left or you may need to approach the landlord for an extension.
2. Right for a franchisee to occupy A typical retail lease prohibits a tenant from subletting, licensing or “parting with possession” or, at least, not without landlord consent. It is a fundamental requirement for leases of franchised businesses that they allow a franchisee to occupy the premises if the franchisor holds the lease. Failure by a franchisor to do this will mean occupation by a franchisee will be a breach of the lease. Also if the franchisor holds the lease as tenant then the franchisee should be granted a licence to occupy or sublease by the franchisor. This is an extremely important document and like the franchise agreement should be reviewed by your lawyer.
3. Lease disclosure statement Retail leases in Australia are covered by different legislation in every state and territory. Tenants, including subtenants or licensees, in most places, must receive a lease disclosure statement. This includes important information about the lease such as outgoings obligations and about the shopping centre if the shop is located in one. You should make sure you receive a copy of this disclosure statement prepared by either the landlord or the franchisor. If disclosure is not properly given you may have additional legal rights. It is very important to have a lawyer familiar with the retail leasing laws look over your lease and/or your licence and the disclosure statements.
4. Right to transfer
Whether a lease is held by franchisor or franchisee it should contain the right to assign (transfer) the lease to certain qualified transferees such as a purchaser of your business. That is, the tenant should be able to transfer
the lease to any approved franchisee or potential franchisee of the same franchise system, without needing landlord consent (or at least the landlord should not be able to withhold consent). Otherwise there is a risk that a landlord could withhold consent to a purchaser with inferior “retailing skills” or financial resources which will severely limit your ability to sell the business. Additionally if the lease is in the franchisee’s name your franchisor might require that it contain a right allowing it to step in and take over the lease if you choose to sell or leave the franchise system.
5. Refurbishment
Franchisees need to be aware that both franchisors and landlords may have separate refurbishment requirements and that negotiation to make sure that these are consistent is in everyone’s best interest. Refurbishments (usually at the end of term or every five years) will be typically at the cost of the franchisee and if a relocation occurs there will be additional fit-out costs. Be aware that the refurbishment timing of landlord and franchisor may not coincide particularly if the lease term and franchise term do not match.
6. Fit-out contributions
Landlords frequently provide fit-out contributions or lease incentives to their tenants. Franchisees of new sites should ask if a lease incentive has been received by the franchisor, particularly a contribution to the fit-out. If the franchisor constructs the fit-out and on-charges the franchisee providing the franchise as a ‘turn-key’ operation (so the franchisee pays the fit-out costs 18
16 Flooring June/July 2014
n i e r o t s newttagong Mi
Another Welcome Addition to the
Choices Flooring Family
Choices Flooring is proud to welcome Rod Preston to the Choices Flooring family, Owner of the new Choices Flooring store in Southern Highlands (NSW). With over 33 years’ experience in the retail flooring industry, Rod is looking forward to building his Choices Flooring store to be the number one flooring retailer in the Southern Highlands area. Plus, Rod and his Store Manager, Peter de Hosson, are very excited to embrace the latest technological innovation, the ‘Inspiration Station’, in their new showroom.
“The sheer cleverness of the management team and staff at Choices Flooring’s Central Office is second to none. The innovative approach to conducting business with the new showroom modelling is the envy of the industry. Peter and I love to embrace technology and the features within our new showroom design provides the perfect environment for an inspiring and overall positive customer experience that clearly differentiates us from competitors.” For a strictly confidential discussion about the future direction of your business, please contact: Andrew Lewis Chief Executive Officer Mobile: 0400 400 036 Email: alewis@choicesflooring.com.au
Tim Drew Group Manager - Retail Development Mobile: 0425 751 756 Email: tdrew@choicesflooring.com.au
choicesflooring.com.au
BuyingGroups&Franchises 16 indirectly) it may elect to keep the contribution and take it into account when calculating the cost of the franchise. Franchisees should be aware that the landlord’s fit-out contribution is usually confidential and will be dealt with in a separate agreement to the lease. The franchisor can negotiate an exception to the confidentiality clause or ask the landlord for consent to advise the franchisee of the details. At the moment it is up to the franchisor to decide whether to tell the franchisee of the contribution however the Franchising Code is under revision and one of the changes proposed for next year (2015) is the requirement to advise the franchisee if a lease incentive has been received and if it is going to be shared with the franchisee. Many franchisors are therefore going to have to rethink how they handle this issue. Most landlords require that the contribution be refunded (usually on a pro rata basis) in certain situations such as termination of the lease for breach or if there is a transfer
of the lease so even if it is passed on to the franchisee you may need to pay it back. Also as a landlord’s fitout contribution is ordinarily allocated against certain works so that they remain the property of the landlord for depreciation purposes the franchisee should make sure its accountant and bank know these details.
7. Usage and menus As a general rule a broader usage favours the tenant. It is common for landlords to try to restrict food court retailers especially to a set menu to avoid conflict between retailers and possible exclusive rights. It is preferable for franchised businesses to obtain a usage such as “Take away food outlet selling pizza, drinks and any other menu items of a ‘Joe’s Pizza’ franchise”. This leaves it open to add further items without seeking landlord consent as the nature of the franchise changes. However, including the name of the franchise system in the permitted use may also limit potential assignees.
8. Signage and marketing Leases often have strict requirements for landlord consent for displays and signs. Many franchise systems require their franchisees to display temporary or promotional signage or displays to reflect seasonal marketing campaigns. This marketing collateral is usually produced centrally and distributed to franchisees. In many situations it is not practical for landlord consent to be obtained every time for this type of temporary display and landlord approval should be obtained to permit promotional signage which conforms with the franchisor’s national image or marketing campaigns.
9. Bank guarantee Most leases will require security in the form of a bank guarantee for several months gross rent and this is usually provided by the franchisee if it is a franchised business. Franchisees should ensure that they make their bank aware of the need for the bank guarantee as early as
possible as this is a common source of delay in securing access to the premises.
10. Insurance The lease usually requires the tenant to take out certain insurances. Franchisors often require the insurance to be taken out by a franchisee (noting the interest of both landlord and franchisor). Again ensure that this is taken care of by your broker at an early stage and obtain the certificates of currency for the landlord. On top of the above you must also look at the usual tenant obligations such as the payment of rent and outgoings, trading hours and so on. Just like the franchise agreement the lease is a binding long term commitment and needs to be treated with as much care and due diligence. Corinne Attard is a franchising and retail commercial law specialist with more than 25 years franchising and retail industry experience including extensive in-house experience. Her clients include some of Australia’s most recognisable retail and franchise brand names.
To buy a franchise or not White Paper published for prospective business owners by Bedshed Bedshed has published an independent White Paper to help prospective business owners choose between a franchise and a standalone business. The White Paper is the first in a series of resources Bedshed has commissioned to assist investors with their decision-making. Bedshed Chief Operating Officer, Gavin Culmsee said many prospective business owners struggled with deciding whether to buy an independent business or join a franchise. “In many cases, the most helpful information people
18 Flooring June/July 2014
receive is advice from existing owners. Bedshed has captured that advice and the insights of those who’ve been there and done it before, and packaged it up for others going through the process,” he said. “Some of the key take outs were: • the importance of considering whether the business will be a job or an investment; • what lifestyle benefits will be on offer; • and how well suited the prospective owner is from a personality and skills perspective.”
“A number of the franchisees who participated in the research talked about purposive business travel being a real benefit they’ve experienced within our franchise. This was a really interesting insight and it’s something potential owners might not have thought to investigate,” Mr Culmsee said. The White Paper was prepared by an independent consultant and was based on in depth interviews with a number of Bedshed franchisees, as well as secondary research. Bedshed also developed an industry first franchise calculator to help prospective
franchisees compare the benefits of up to three different models. “Bedshed is committed to promoting the growth of the franchise and small business industries. It’s something we genuinely believe in, which is why we developed the Bedshed Franchise Calculator and why we commissioned this series of White Papers,” Mr Culmsee said. The full white paper and the Bedshed Franchise Calculator are available on the Bedshed website: http://www. bedshed.com.au/franchising/ publications
n i e r o t s new rratha Ka
Another Welcome Addition to the
Choices Flooring Family
Choices Flooring would like to welcome Anne and Kevin Clark to the Choices Flooring family. Anne and Kevin were excited to transform their private flooring business in Karratha (WA) into a Choices Flooring store. With the support of the Choices Flooring family, Anne and Kevin are now confident in focusing their attention to developing the commercial side of their business within their local community.
“The Choices Flooring Central Office team are highly motivated and professional. Their support, from our first enquiry into becoming a member through to the showroom fit-out, has been first class. We could not have asked for anything more. Plus, the innovative technology in the Choices Flooring Store Evolution Program, especially the Inspiration Station, is proving to be the perfect selling tool.� For a strictly confidential discussion about the future direction of your business, please contact: Andrew Lewis Chief Executive Officer Mobile: 0400 400 036 Email: alewis@choicesflooring.com.au
Tim Drew Group Manager - Retail Development Mobile: 0425 751 756 Email: tdrew@choicesflooring.com.au
choicesflooring.com.au
BuyingGroups&Franchises
The Franchising Code reforms: implications for franchisees By Professor Andrew Terry, Professor of Business Regulation, University of Sydney Business School Reprinted from Franchising newsletter – www.franchise.net.au What does the revised Code of Conduct offer franchisees? “Franchising is a substantial and growing part of our small business community and has displayed a great capacity for nurturing innovation and entrepreneurship in Australia. The Government’s commitment to these important franchising reforms will ensure that our regulatory settings remain responsive to the needs of the sector to promote confidence, competitiveness and productivity.” These words of the Hon Bruce Bilson, Minister for Small Business, in introducing reforms to the Franchising Code of Conduct underpinned by, and in some cases going further than, the Wein Review recommendations will be welcomed by the franchising sector. But while it may be politically correct to opine that franchising is the winner, in the context of the inevitable tension between
20 Flooring June/July 2014
franchisors and franchisee in matters regulatory, it is franchisees rather than franchisors who will take most comfort from the reform package.
The most significant reforms will: • introduce a general duty for franchisors and franchisees to act in good faith in their dealings with each other; • introduce civil pecuniary penalties for Code breaches; • enable the ACCC to issue infringement notices for Code breaches; • improve prior disclosure; • improve the transparency of marketing funds; • invalidate certain restraint clauses. The proposal is to prescribe the reforms in a new 2014 Franchising Code of Conduct which, from 1 January 2015, will replace the current 1998 Code.
This is a sensible development, which reflects a cleaning up exercise. The 1998 Code has become increasingly cluttered and complicated by the addition of new provisions between original provisions requiring, in the case of the Disclosure Document for example, the introduction of Items 17A, 17B, 17C and 17D between Items 17 and 18. While there is a three week period allowed for consultation, it is not expected that there will be any changes of substance to the proposals announced. The Government invited comments on: “technical aspects of the implementation of the law” and made it clear in its 2 April Exposure Draft that: “there is no intention for the process to reconsider the policy underlying the reforms”. For the most part the reform package holds no great surprises to those who have followed the Wein Review.
instead be left to the judges to determine on a case-bycase basis. The Exposure Draft provides that good faith includes an obligation to: “act honestly and not arbitrarily; and to co-operate to achieve the purposes of the franchise agreement”. Good faith is a very ephemeral concept – it has been described as a concept in search of a meaning – and a strong case can be made for leaving its meaning to be developed by the courts.
The introduction of good faith
The Exposure Draft provides that good faith includes an obligation to: “act honestly and not arbitrarily; and to co-operate to achieve the purposes of the franchise agreement
The most high profile exception relates to good faith. The introduction of a general obligation of good faith imposed on franchisors and franchisees in relation to all aspects of the relationship was expected. Wein concluded that, despite their being “many compelling arguments both in favour of, and against, the introduction of a specific obligation of good faith, the weight of opinion supports the inclusion of such an obligation”. The Government has nevertheless rejected the Wein recommendation that good faith not be defined and
The Franchise Council of Australia’s argument that the new wording will create “unnecessary legal uncertainty, disputation and compliance cost” and may affect bank lending as “it will not be possible to determine with certainty whether a signed franchise agreement will in fact be enforceable” may be overstated. But franchisees must appreciate that good faith is not a universal solvent providing an antidote to anything that goes wrong in a franchising relationship.
BE PART OF THE BIGGER PICTURE 141 members and growing
For a strictly confidential discussion about the future direction of your business, please contact: Andrew Lewis Chief Executive Officer Mobile: 0400 400 036 Email: alewis@choicesflooring.com.au
Tim Drew Group Manager - Retail Development Mobile: 0425 751 756 Email: tdrew@choicesflooring.com.au
choicesflooring.com.au
Retailer of the month
A business with a long history Reliance Carpet, Camberwell,Victoria
W
Above: Part of the rug cleaning machinery. Left: Jenny and Allan Lawton. Right: Brothers Graham and Allan Lawton
22 Flooring June/July 2014
hen you find a business run by the third generation of a family, that is an achievement to be recognised. When that business is still occupying the premises bought by its original owner in 1927 it is safe to say that there is something very special about it. Allan and Graham Lawton own and run Reliance Carpets on busy Burke Road in Camberwell, Melbourne. The central showroom of the store is the site of the original shop premises dating from 1927 and the rest of the store has grown around it ‘like topsy’ as Allan explained. Established in 1910 by Harry Lawton, Reliance Carpet Company was a window and rug cleaning company servicing all of Melbourne. In 1927 Reliance moved to its present location in Burke Rd Camberwell and, following World War II, owner
and proprietor Harry, along with his son, Roy, started to branch out to meet a growing demand to sell and install new carpet. Allan Lawton joined his father in the business in 1964, a few years after leaving school, with brother Graham following the next year. Apart from a two year stint when Allan was called up for National Service, the brothers have worked together in the business ever since. Father Roy continued to work part time in the business until the age of 80, having started straight from school age 15 years. Allan’s wife Jenny has also been an integral part of the business for 30 years. “Dad was the one who was keen on expanding the business – he always had quite a vision,” said Allan. “I think, in another life and with more education, he would have liked to be an architect.”
As the business grew, the one small showroom became overcrowded and a decision was made to extend into the shop next door, which they also owned. When this, too, proved to be insufficient, the driveway at the other side of the main building was blocked off and converted into yet another showroom. A selection of offices and a large storeroom and workshop at the rear of the premises completes the present set-up. One office still boasts the remains of the rug cleaning business with a large metal wheel and a rug table featured on one wall. While the initial impression of the exterior of the store and the doorway is that of an old fashioned business, the interior is very up-to-date without being overly modernised. Together they project a well presented, comfortable, middle to upper market traditional carpet store, which is ideally suited to its major clientele, who reside in the upper income bracket suburbs of Camberwell,
Malvern, Glen Iris, Hawthorn and Toorak. The emphasis is very much on wool carpet, with the business having been a WoolSet member from the very early days of the group. “We weren’t one of the first members but we joined quite early on,” said Allan. “The group was initially just the core six businesses and to join you had to be personally invited. It was very exclusive.” Reliance Carpet supplies and installs premium wool carpets from Cavalier Bremworth, Feltex, Feltex Woven, Kalpakian, Tascot, Prestige, Edwardstown Carpets, Godfrey Hirst, Kimberley, Metropol, Victoria Carpet Company, Brintons Australia, Brintons UK and Tattersfield. It is also an authorised Amtico Flooring dealer. With their extensive showroom of quality carpets from Australia and around the world, Reliance Carpet Company can satisfy the needs of astute buyers and home decorators.
Left: Founder Harry Lawton. Right: Part of the original rug cleaning equipment.
…AIRSTEP UNDERLAY …“THAT’S CONFIDENCE” www.airstep.com.au • Bonded Foam Underlays • High quality Natural Rubber Underlays • SBR Double Bond Commercial Underlays • Floating Floor Underlays • Recycled Textile Underlays THE COMPLETE UNDERLAY COMPANY Manufactured and distributed by AIRSTEP AUSTRALIA LTD, PO Box 166 Dandenong Sth Vic 3175 Ph: VIC/TAS 1800 803 545 NSW 1800 802 926 WA/SA/NT/QLD 1800 806 375 Fax all states (03) 9706 8553 In New Zealand distributed by
Jacobsen Creative Surfaces Auckland (09) 574 0640 Wellington (04) 4954 300 Christchurch (03) 3664 153
Carpets&Rugs
Touchtiles launched across Australia Cavalier Bremworth has unveiled a range of five soft-touch modular floor tiles at launch events across
Australia. Saving time, money and stress, the Touchtiles Collection has been designed specifically for the hospitality
The Perth launch of the Touchtiles Collection featuring Cavalier Bremworth GM for Australia, Cathy Howitt, with local retailers and guests.
and apartment market. With five unique tiles in the range, and choices in wool and solution-dyed nylon, they will fit most decor options. Being very soft to touch, toes won't tell the difference from broadloom carpet. The soft-touch tiles make for hassle-free installation alongside easy-care maintenance. Any damage to flooring doesn't require the whole floor to be replaced, only the damaged tiles. They are also easy to transport, fitting into lifts, storing easily in cupboards where they can be used to replace damage tiles by cleaners and/or maintenance staff. The result
Shaw to sponsor green awards Shaw Contract Group, a leading sustainable manufacturer, has committed to partner with the World Green Building Council (WorldGBC) to sponsor the inaugural Asia Pacific Regional Network Leadership Awards in Green Building. “Shaw Contract Group is honoured to partner with the WorldGBC to recognise true leadership and achievement in green building,” said Shaw’s Director of Global Marketing, Todd Jarvis. The biennial awards program will honor outstanding organisations for their commitment to sustainability, and will celebrate innovative green building projects that are reducing carbon emissions and other environmental impacts, cutting costs and driving higher levels of health and productivity for building occupants. “We are excited to be collaborating with Shaw to host the Asia Pacific Regional Network Leadership Awards in Green Building. The partnership is a natural fit as
24 Flooring June/July 2014
Shaw is a leader in postconsumer recycling having recycled more carpet than its competitors combined,” said Jane Henley, Chief Executive Officer of the WorldGBC. Appropriately, the announcement of the awards on 2 September, 2014 will coincide with the anniversary of Shaw’s grand opening of the first manufacturing facility in the Asia Pacific to produce globally-consistent, cradle-to-cradle certified carpet tile. Two high-profile architects, Ken Yeang and Karan Grover, have also been announced as judges, joining Hans Shrader from the International Finance Corporation, Constant Van Aerschot from the Business Council for Sustainable Development Singapore, and Stefanos Fotiou from the United Nations Development Programme. The awards honour leaders, innovators and champions in sustainability and green building. The program is open to companies large and small, as well as to projects across the region.
is less disruption for hotel operators, landlords and their guests or tenants. The Touchtiles Collection features a 45oz wool striated cut and loop pile called Legato Tile; a 48oz wool cut pile called Castilla Tile; a 40oz wool loop pile called Infinity Tile; a 36oz solution-dyed nylon cut pile called Ubersoft and a 36oz striated cut and loop pile called Uberstripe. There is a palette of four colours for most products in the collection, including a mix of plain and stippled yarns, and covering the most popular choices ranging from a soft cream and grey through to a darker brown and charcoal.
Pacific The latest addition to Shaw’s In Stock carpet tile range. Designed specifically for Australia and New Zealand, the collection delivers on value and style taking inspiration from the Pacific’s most beautiful black sand beaches. Design is local.
250,000m2 OVER 50 STYLES
IN STOCK NOW
Contact us to find out more or to order an ‘In Stock’ swatch of carpet tiles today.
1554
Australia 1800 556 302 shawcontractgroup.com.au
New Zealand 09 574 0640 jacobsens.co.nz
Carpets&Rugs
Distinctive designs The Rug Collection has released its second range of rugs with celebrated textile designer Nicola Cerini. Nicola has, once again, extended her design talents in this exciting collaboration. The four piece collection explores the striking silhouettes and colours seen in the everyday, and is influenced by Nicola’s travels throughout Japan as well as her appreciation for the natural landscape of local coastal beauties Tasmania and Torquay. These distinctive pieces have bold designs, fashionable colours and voluminous textures.
A durable solution
FreeFit
™
Intaglio Sculpture Plank.
Call David Coggins 0419 798 726
26 Flooring June/July 2014
The wear and tear of high traffic areas is no secret to the education and commercial sectors. For years, architects have been specifying the use of carpets as a staple for protecting the walls of hallways, classrooms and meeting areas. Carpets used as a wall lining can prevent dents, scuff marks and scratches as well as preventing ongoing costs in maintenance. However, international research, over the past decade, into the reaction-to-fire behaviour of wall and ceiling lining material, has identified new fire test methods that more accurately represent the early fire growth hazards associated with ignition and flame spread over room linings. Based on experiments conducted on selected wall and ceiling surface lining materials using the ISO 9705 testing, it was found that most ranges of carpet no longer satisfy the requirements to be used for internal wall linings. Numerous factors have caused traditional carpets to fail the ISO 9705 testing including the materials used to line the backing of the carpets or the mix of fibres that have been used to create the carpet. As result of these tests, carpet manufacturers have turned to research
and development to find a solution to achieve the desired ISO 9705 fire ratings. Textile company, Autex, has answered this demand by creating a unique range of carpet for wall covering. Aptly named Autex Dado, this carpet has been created specifically for wall coverings. Employing a unique manufacturing technique, Autex has developed a single fibre carpet that doesn’t require a backing. The solution has allowed Autex Dado carpet to achieve Group 1 and Group 1-S fire ratings without jeopardising design capabilities. Designers and architects now have the peace of mind that they can specify a carpet for wall linings that is not only going to be durable and protect the walls of education facilities and commercial buildings for years to come, but also a wall lining carpet that is going to help provide a safe and reliable solution to achieving the new ISO 9705 Fire Rating Standards.
Karndean Designflooring is introducing its latest development in its popular Flotex Essentials collection. As the starting point to the expansive Flotex two metre wide sheet portfolio, the expanded Essentials collection continues to offer the benefits of the earlier version, but with an expanded range of designs and colours. The carefully selected colours in the Essentials collection allow the company to take advantage of full manufacturing runs and keep costly dye lot and roll ends to a minimum with the savings being passed on to the customer. The Essentials collection’s deep stock availability and continuity make it an ideal choice for multi-stage and site applications. Having
reassurance that regular product stock is available is one of the many benefits of the Essentials Collection, especially with projects requiring larger quantities or short lead times. As the successor to the much loved Flotex Non-Standard range, the Essentials collection offers many of the same benefits, particularly for customers on tight budgets. Unlike the old Non-Standard, though, each product in the Essentials collection has no imperfections and is consistently available. Karndean has expanded the range and introduced the popular geometric design, Senya, to the collection in selected colours as well as increasing the Flotex Calgary colour palette.
Autex Commercial Carpets now proudly hold GreenTag Certification. Autex is always working to build upon our achievements and improve our environmental performance for energy efficiency, recycling, waste reduction and product stewardship. We can proudly state that no carpet waste from our manufacturing operation goes to landfill.
To learn more about Autex Carpets’ environmental ethos visit
www.autexindustries.com
Licence no: Autct001
cA_PA_Flooring_Magazine_June14_MW
The Essentials in flooring
Doing our Part to Protect the Planet
Carpets&Rugs
Interface and the importance of locally made We all know that local manufacturing means more jobs and that the success of local industry strengthens the Australian economy and, in turn, the size of its role in the global market. Locally made products also allow local businesses to provide flexibility to market, shorter lead times, and ultimately better quality of service to customers.
Local textile manufacturer, Interface is enjoying its return to action with its operations back up and running on Australian soil after fire devastated the company’s original facility in Picton in 2012. Interface – the world’s largest designer and maker of carpet tile – officially reopened its doors on 1 May, 2014.
While getting back on its feet and rebuilding a stateof-the-art plant in Minto, Interface had to outsource its carpet tiles from its other factories in the Asia Pacific. This was a necessity in order to keep their Australian operations alive and well while the factory was being rebuilt. Now that the first-class rebuild is complete, Interface’s 40-year legacy in local manufacturing has a renewed focus.
Being Australian made is a point of pride for the global company in terms of quality assurance and shorter lead times. In fact, a major driver for the decision to rebuild in Australia after the fire was the importance of being ‘Australian’ made to the local market. By manufacturing locally, Interface is able to continue its valued relationships with suppliers, employ over 150 manufacturing workers and
ADVERTORIAL
AFD GIVES AWAY MAZDA 2 NEO The Advantage Flooring Distributors’ (AFD) new year started with the giving away of a brand new Mazda 2 Neo Sports at the annual Solomons/Carpet Call Conference, held in Sydney. This year’s special prize was part of a new promotion Advantage Flooring Distributors has been running with the stores for the past 10 months. All stores became actively involved and by the time February came around there were a large number of stores in the draw – all eager to win a brand
Rob Fahi, Solomons Kawana; Shanen Chapman, Solomons Tweed; Scott Davies, Mt Gambier and Geoff White Solomons Brendale with Tony Mihan and AFD staff member, Tony Galbraith.
new car. The winners were Shaun and Tracey Mihan from Solomons Hervey Bay. The night saw a number of other winners take away a token of appreciation. These included Rob Fahi from Solomons Kawana; Tony Galbraith presenting Shaun Mihan the keys to his new Mazda.
28 Flooring June/July 2014
Another award given away on the night went to Geoff and Kay from Solomons Brendale, who were named AFD’s Top Store. At the same event, the Advantage Flooring Distributors’ team was named ‘Supplier of the Year’.
Shanen Chapman, Solomons Tweed; Scott Davies, Mt Gambier
“At Advantage Flooring Distributors we pride ourselves on our
and Geoff White Solomons Brendale.
customer service and we are humbled by this recognition.”
IntroducIng
YOUr FIre rAteD CArpet FOr WAll COVerINGS Dado; a stylish and practical wall covering carpet available in a classic ribbed finish. Autex Dado carpet has been tested to ISO 9705: 1993 and AS ISO 9705-2003 and has achieved a Group 1-S (NZ) and a Group 1 (AU) classification. UV Stabilised and resistant to colour fade, Dado is a non-woven fabric that won’t zip or fray making it ideal for use as a wall covering carpet in schools. to learn more about our safe, non-toxic, non-allergenic, recyclable and environmentally friendly carpets visit
www.autexindustries.com
cA_PA_Flooring_Magazine_June14_MW
provide a better customer service and quality assurance. It also allows Interface the flexibility and agility to service the needs of customers with a broad range of custom and madeto-order products with quicker lead times. In essence, keeping things local means customers will be getting a superior product – faster. Flexibility and responsiveness is a key aspect to the Interface business model as it allows it to service a job as small as five square metres or as large as 5000 square metres all the same day. “To succeed now, all manufacturers need to be fast and flexible, delivering a bespoke order that is always on time. The technology in our new plant enables this,” said Clinton Squires, Managing Director for Interface Australia and New Zealand.
Business
Make this new financial year your best in business Sue Hirst, Director, CFO On-Call With the end of financial year, now is a great time to consider the results for this year and what you want to achieve next year. There is an old saying “If you aim at nothing you will hit the target with amazing accuracy”. If you want to improve the results in your business a target to aim for and a system for monitoring progress is a great start. As a business owner here are a few questions to ask at this time of year: • How were our results against target for this year? • Did we have a target for this year? • Are we happy with the results for this year? • How accurate are the results for this year? • What do we want to achieve next year? • What can we learn from this year to improve next year’s results? It can be difficult to find the time to consider these issues when you’re busy running a business, but a small amount of time spent now can pay big dividends to your results next year. Here are a few ‘key issues’ to consider and get control of: • Compare results: Have a budget, ie, something to compare actual results against, that way you have a regular procedure for checking income and costs are on track. You can see very quickly if margins are slipping, find out why and take corrective action. • Identify overspending: If you don’t have a monthly budget you may not find out until way after the financial year (sometimes 18 months later, if you rely on accounts produced for tax) that you have overspent on some items. Imagine if you had a small number of items of overspending that added up to say $1,000 per month. If you left it until tax accounts are prepared it could cost you $18,000 in lost profits. With a monthly budget you can identify overspending quickly and take action
30 Flooring June/July 2014
to fix it. A budget can be entered into most accounting software systems and a Budget versus Actual profit and loss can be printed so that you can easily see any variances and manage them. • Spending limits: A budget lets your staff know there are limits on spending. It’s amazing how some staff will keep spending if they don’t have a limit.
“Anything you can do to increase the net profit can have a big impact on the value of your business. As many businesses are sold on a multiple of EBIT (earnings before interest and tax), it makes sense to increase this result.”
Tip: A really valuable tool to use here is a Purchase Order. This is a one-page document that is completed by staff wanting to order/buy something over a value of say $100, that needs to be authorised by a senior manager prior to order placement. The value of this tool is that the senior manager may know something the person ordering doesn’t know, such as obsolescence or a better way of achieving the result. This can save literally thousands of dollars every year. • Resources: A budget helps you to plan what resources will be required to achieve the sales you plan. It’s important to match the outgoings with the income and plan what resources will be necessary. Thus avoiding crisis management, which is no good for morale. • Funding: If you want to acquire new business funding or roll over current lending, you will definitely be required to produce a budget and probably a
business plan. A lending institution needs to be confident you have thought through your business and funding requirements. If they can see that you regularly measure actual versus budgeted results they will feel much more comfortable with you as a borrower. • Break-even: Some people say: “It’s too hard to do a budget because I can’t predict what I will sell”. However, most businesses know what their direct costs and overheads are, so it should be possible to calculate the break-even point. Break-even means the level of income you need to cover costs and overheads, ie, not making a profit or a loss but a $0 result. By knowing your break-even point this puts you in a good position to target sales for profit and create targets for individual people, departments, regions etc. Anything you can do to increase the net profit can have a big impact on the value of your business. As many businesses are sold on a multiple of EBIT (earnings before interest and tax), it makes sense to increase this result. Many businesses have been run in the past with the aim being to minimise tax, but this isn’t a good strategy if you want to sell your business in order to retire or do something else. Multiples of EBIT vary depending on the industry and business management, but say it is three – this means that for every extra dollar you can add onto net profit, that would be three dollars added onto the value of the business. If you could increase your profit from $100,000 to $200,000 you would add an extra $300,000 onto the sale price and potential contribution into your superannuation fund on retirement or exit from the business. It makes sense to invest a little time planning for the profit you want to make in your business and reap the increased business value benefits down the track. CFO On-Call has a budget tips sheet (http://info.cfooncall.com.au/budget-tipswhitepaper).
IMAGINE NO PENCILS, SCALED RULERS, HIGHLIGHTS, SCALED PAPER How long would it take to run a tape in a room 6.9 x 9.5, draw a plan, estimate the quantity for 3.66 carpet, underlay, pull-up, installation, funiture removal, produce a scaled installation plan, and written quote for a customer. With m2 iPad, capture customer details including site address 60 seconds, draw floor plan 10 seconds including doorway positions, measure room and resize plan 10 seconds, apply 3.66 carpet, installation, underlay, furniture removal, pull-up 10 seconds, estimate carpet and all installation costs, produce a scaled installation plan with seam locations, direction of installation and cuts required 5 seconds, produce a fully costed price for your customer 5 seconds produce a written quote and email it to your customer 10 seconds.
TOTAL TIME TO MEASURE, PLAN, ESTIMATE, COST, AND SELL 100 SECONDS Imagine creating a fully estimated plan, seam daigram and quote in minutes. Imagine the only multi-tool you need on your next measure is your index finger
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Imagine sharing your plans via email, or your favourite cloud storage provided Imaging the time it would save you Imagine the simplcity Imagine the professioanalism Imagine how many more in home measures you could do We have imagined all this and more. Visit www.measuresquare.com.au and watch our informative video
MeasureSquare Commercial When You Need Every Tool at your Disposal
Call +61 7 3166 9128 and arrange your online demonstration you won’t be disapointed
Laminate
Proline Floors launches laminate long board Proline Floors has launched a revolutionary new Grand Provincial Oak range of long board laminate flooring. Paul Ronzon, leader of Proline’s Evolution Design and Innovation Studio, developed the product based on consumer feedback and market research. “Oak has become hugely popular in the Australian market and we spent a great deal of time meticulously ensuring our Grand Provincial Oak range of laminate flooring was going to exceed customer
expectations in terms of colours and realism. We are extremely pleased with the results and more importantly, so are our customers.” Affordably priced, the Grand Provincial Oak range has many remarkable features including a huge 2200mm x 196mm long plank, EiR registered embossed surface and Valinge long side 2G click with drop lock short, which results in to 50% faster installs and no need for destructive hammering of the ends.
Quick-Step fine tunes With quality, design and innovation being the cornerstones of its ranges, Quick-Step has fine-tuned its ranges including its laminates, timbers, bamboos and accessories.
Eligna
32 Flooring June/July 2014
Quick-Step’s laminate range has useen the introduction of three customdesigned products inspired by Australian species for the Largo range. Meticulously researched and prepared by
National Product Manager, Kendall Waller, the refined Largo range exudes class, especially with its wide boards and rustic charm. According to Kendall, this is the first time in Quick-Step Australia’s history that Largo products have been created specifically for the local market using Australian species as inspiration. “The research, discovery, design and production process was intense and exhilarating all at the same time. The initial vision of creating three dynamic flooring products that can now be showcased in Australian homes is very rewarding. Australian consumers can now choose from Blackbutt, Spotted Gum and Recycled Hardwood in the refreshed 10-colour Largo range.” The Quick-Step Eligna Wide continues to dazzle with the launch of a suite of new grey hues – softer to darker grey, reclaimed looks with knots and cracks and a lively surface texture. “In recent times, we had discovered that the preferred neutral tone in Australia was grey and it was fundamental that Quick-Step
Largo
not only accommodate these preferences but create a suite of greys that appeal to an even wider audience,” said Kendall. “Eligna Wide is now available in Caribbean Oak Grey Planks, Caribbean Oak Dark Planks and Oak Planks with Saw Cuts Light. Lovers of the natural brown tones will not be disappointed with the introduction of the Reclaimed Oak Brown Planks. That completes the seven-strong hue range in Eligna Wide.” Quick-Step’s Classic laminate range now has 12 shades with the addition of Havannah Oak Natural with saw cuts, Havanna Oak Dark, also with saw cuts and Moonlight Oak Natural.
LVT
Shaw’s luxury vinyl tiles deliver style and value Shaw Contract Group commercial flooring’s high performance luxury vinyl tile (LVT) collections, Crete and Jeogori are making a statement of durability, design and value. The stylish patterns of the 18 inch square LVT collections are in stock now and form part of Shaw’s In Stock resilient collection. According to Shaw Contract Group Australia National Sales Manager, Blair Coventry, Crete is proving particularly popular. “Both Crete and Jeogori are constructed with design and performance in mind and with the current polished concrete floor look being on-trend, Crete is proving particularly popular,” Blair said. “The product’s ability to withstand heavy traffic in environments such as retail, healthcare and hospitality while also being able to deliver on design and value is seeing clients make their vision a reality.
BP Footscray, Melbourne.
“Both Crete and Jeogori are also easy to install and maintain,” he said. Evoking industrial ambience, the Crete palette is an infusion of warm neutrals and subtle modelling reminiscent of concrete and vintage leather and includes 12 colours. The eight Jeogori colours boast a woven appearance that draw inspiration from the traditional, South Korean garment and includes fabric elements to create surface interest. In select colours, the metallic saturations accentuate the pattern for a
chic upgrade to the traditional linen visual. Developed by Shaw Commercial Hard Surface, both collections are constructed with high performance raw materials and are finished with Shaw’s exclusive ExoGuard quartzenhanced urethane finish to withstand heavy traffic and offer flexible, polish-optional maintenance. The ExoGuard quartzenhanced urethane finish combines with a 0.5mm commercial wear layer to provide a 3mm thick product that is more forgiving over uneven subfloors. The backing layer also ensures dimensional stability across tiles. Both styles are in stock now and available onsite within 72 hours to most locations.
Project Profile – BP Footscray, Melbourne
Shaw’s luxury vinyl tile Crete.
34 Flooring June/July 2014
The durability of the floorcoverings was the main consideration when selecting the flooring for the new BP
Footscray, Melbourne. High foot traffic was expected in the premise but BP did not want to sacrifice on style just because they were seeking a durable and budget conscious flooring. The new site caters to local everyday commuters and due to its proximity to the industrial precinct, drivers of heavy commercial vehicles undertaking long haul trips. With multiple access points to the main building and numerous point-of-sale points, high foot traffic areas were identified as well a food and beverage area. The interior’s colour scheme was to be in keeping with BP’s brand colours and the finishes where to be cost effective but also durable with a touch of modern style. Shaw Contract Group’s LVT Crete in the colour Smoke provides a modern and stylish finish similar to polished concrete at a cost effective price point that is also durable and easy to maintain. Crete was also easy for the flooring contractor to install.
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Standing the test of time Karndean Designflooring’s Art Select Collection is leading the charge for those seeking smart flooring solutions. Whether you choose from the Parquet, Oak Royale, Oak Premier or Handcrafted, the Art Select collection is very true to the natural look of timber floors but with the benefits of being vinyl. The collection is comprised of luxury vinyl planks based on the finest natural materials. The planks are durable, quiet
and low maintenance with a premium 0.7mm wear layer suitable for both the residential and commercial market. “Art Select is the perfect product for those wanting premium yet long-lasting flooring in tones that complement timeless finishes from stone to timber to linen,” said Chris Hovey, National Sales Manager – Retail LVT at Karndean Designflooring. “Wood look flooring creates a warm natural looking base to start decorating any space. There are colours and grains to suit any furniture style.” The Parquet is heralded as the ideal choice for hallways providing an impressive
entrance, whereas the Oak Royale is perfect for bathrooms and living areas giving that homely and comfortable environment with its artisanal hand-scraped and grainy effect. At the other end of the scale, the premium Handcrafted range is primarily
used in bedrooms and living areas, with a naturally worn look that is rich in texture. Rounding off the collection and with six textured colours, the Oak Premier has the adaptability and unique grain pattern to work in any setting.
Standing the test of time Karndean Designflooring is unveiling brand new wood, stone and textile designs as part of its LooseLay Series Two launch. Introduced in 2013, Karndean LooseLay is an innovative new format of luxury vinyl flooring that’s not only quick and easy to install but simple to maintain. Designed with convenience and style in mind, the new LooseLay Series Two collection features six on-trend wood tones, two stunning stone designs and two unique textile tiles available in large planks (1050mm x 250mm) and tiles (610mm x 500mm). Inspired by natural materials, Karndean’s new wood designs reflect the trend for delicate oak, worn wood and distressed patterns in commercial spaces, and feature the cool, soft white hues of Ashland LLP95 to the warm, dark chocolate tones of Dover LLP93.
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The light tonal greys and contrasting warm, dark brown hues of Karndean’s new slate inspired stone designs – Georgia LLT206 and Texas LLT207 – will suit both traditional and modern commercial interiors. New for 2014, Series Two introduces Karndean’s first textile stone designs – Pennsylvania LLT204 and Nevada LLT205 – in a modern linear pattern, which can be applied in a variety of environments for a distinctive or modern look. The collection’s large scale planks and tiles combined with the fact that it’s quick and easy to fit, means reduced downtime and reduced installation costs. It can be installed over most hard floors as long as they’re smooth, sound and dust-free. Tried and tested in several markets worldwide, the complete Karndean LooseLay collection boasts enhanced acoustic properties and excellent environmental credentials.
Trying to put the pieces together?
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How many systems do you have in your flooring business? You only need one.
The Flooring Software leader for more than 26 years Clients in Australia and NZ since 1999 More than 50 flooring businesses in Australia and NZ (8000 world-wide) Out of the box-requires no development Configured to your exact requirements
Australia: 800 229 427 New Zealand: 0800 643 012 www.rfms.com cogden@rfms.com
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Software
Technology and staff: what are the benefits? What would happen to your business if you (or you and your partner) were to suddenly walk away from it for an extended period of time – say six months – while you have a European holiday? If you cannot confidently anticipate that the business would be as good (or better) in six months time then you have a problem. You don’t own your business – your business owns you. If this is the case you’re not on your own: the majority of flooring businesses that I see revolve around the skills and experience of a small number of people and often just one – the owner. If the success of your business rests solely on you or a small number of key people then there are a number of things that you should be doing to change that situation but over the next few paragraphs I would like to consider just one – your staff. What is the quality of your people?
One of the big challenges we face is attracting good people into our businesses. Generally, we are employing people who have been in the same pool of flooring employees for the past 20 years and longer (20 years experience or one year’s experience 20 times?) or people who come into the industry but quickly disappear from it. Why is that? Frankly, our businesses, with some exceptions, are locked in the 70s and 80s; nothing has happened in the past 30 years that has made our businesses fundamentally different to what they were back then. Good staff have expectations of an employer and one of them is that on getting to work they won’t feel that have stepped into a time warp. The biggest opportunity to change this situation is to adopt technology that will help you run your business and to attract and retain good staff.
What sort of feedback can you give your staff? If they have done well you need to know so that you can encourage and reward your high performers. Similarly you need to be able to coach your under performers to the point where they either improve or they go to work for the opposition (you know most of them will stay in the industry). These decisions have to be based on facts. Good luck with any staff discussion where you kick off with: “I think...”. You have to know and you have to be confident in your facts. Do you pay commission to your sales staff? I recently saw some data out of the US that showed that, on average, flooring salespeople on commission achieve higher GP, have a higher conversion rate, a higher average sale and take fewer days to close. Most of us instinctively know that paying commission is the best way to remunerate salespeople but we don’t
because it’s hard – we don’t have the systems that would make implementation of a commission scheme as easy to do as paying a weekly wage. So, if we don’t have consistently good people and if we don’t have the environment or the incentive packages to attract good people we very likely have a business that owns us. The staff structure in most flooring businesses can be represented by an upside down pyramid: at the pointy end we have owners and maybe one or two good staff carrying the weight of the the rest of the team and the business. The reality is that there is technology out there that can change this, that will help you attract and keep good people. There is technology out there that will enable you to measure performance and to run effective commission schemes. RFMS is a leader in this market and I would love to show you how investment in a business management system will not only make you more profitable today but make your business easier to run-even from a distance as you take that European holiday. Chris Ogden is a consultant and Managing Director of RFMS Australasia a supplier of IT solutions specific to the flooring industry. He owned a large and successful flooring business which he sold and for 10 years he was a director and Chairman of Carpet Court New Zealand. He was CEO of a large retail flooring enterprise before leaving that role to partner with RFMS to form RFMS Australasia.
38 Flooring June/July 2014
Improving the estimating process I sometimes get calls from retailers who ask me to use Measure to check quantities on jobs that they missed out on. In most cases I can show them that they were quoting too much product: in today’s tough market even a metre or two on a house lot of carpet is enough to put you out of contention. Aside from quantities the most frequent comment I get is about how quickly I can come back with quantities. I recently spent 20 minutes on a job that the salesperson had spent an hour and a half quantifying. The benefits of using software such as Measure
to help you in this key aspect of your business are considerable: • save 40-60% of the time you currently spend on the estimating process; • get consistent estimating from everyone in your business; • be 100% confident of your quantities; • no longer include “fudge factors” that make you uncompetitive; • improved documentation for customers, the work room and installers; • gain a valuable sales tool as you differentiate yourself from your competitors;
• new employees become more productive more quickly. There is good reason to trial Measure in your business. How well we do will always begin with how successful we are in the processes of estimating and quoting; both of which rely on accurate information and prompt responses to our potential customers. Measure gives you both. The fact is that you have a limited window of opportunity to make a sale; the longer the plan sits on a desk unquantified and the longer it takes to get a quote into the customer’s hands the less
likely it is that you will make the sale. Using Measure you can get more quotes out more quickly and more accurately. Because you can be confident of the quantities you can be more competitive and profitable and the time saved means that your salespeople have time to follow up on leads and to close sales. You can trial Measure free for 30 days at measureflooring. com to see how adopting just this one piece of technology might help you grow your business. Chris Ogden is a consultant and Managing Director of RFMS Australasia
Software
It really is easy to use What could be simpler than a pencil, paper and measuring tape? MeasureSquare Corp and Laser Measure have been asking themselves this question for nearly 12 years. As pioneers in estimation software designed specifically for flooring sales professionals and flooring businesses, they bealieve the new MeasureSquare iPad application turns mobile measuring, planning, estimating, quoting and sales processes in the customer’s home, into child’s play. Here is what a couple of our new users of MeasureSquare iPad and MeasureSquare Commercial editions had to say.
MeasureSquare iPad
“I wish I had this software when I was measuring. I have it now just for the fun of it.” And. “I downloaded it and tried it out today with my iPad. It’s going to take some getting used to but what a tool. Very impressed, I want a Laser Measure now.”
MeasureSquare Professional and MeasureSquare iPad “I have been using Measure Square now for the last six months and have found it to be a very compact and easy to use tool. The systems layout and functionality is second to none and the end product for the customer not only looks good, but I am convinced that it wins jobs.
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“I am looking forward to getting to grips with the iPad software so that I can simplify my onsite experience as well. The fact that there is a software option that works alongside Apple Macs is another bonus. An update to use the Leica Disto D3aBT would be good. Having used, and paid more for other programs, I can honestly say that Measure Square is the best that I have found. “Your help and continued instruction is also a great asset.”
MeasureSquare Commercial +
“We wish to compliment the software system we have purchased to assist our company in the quotation, invoicing and purchasing of product for the flooring industry. Furthermore, we would like to express our appreciation of your time, patience and the generous amount of tutoring given to us during the initial training period. “Already we feel we have recouped the cost of the program in the first month – in time, frustration and effort to satisfy our corporate clients in their expectations of professional and efficient presentation of costings and plans, to enable their decision making favourable towards Rylex Flooring. “Rylex Flooring principals have 20 years’ experience in professional carpet installation, commercial floor preparation and vinyl installation services and now we have the same calibre of estimation assistance in the Laser Measure program.”
MeasureSquare Professional
“We have been using MeasureSquare for the past couple of months now and it has made a significant difference in how we are able to look at and tender for new work. It is so much more accurate and quicker to take off quantities and workout the overall quantities for material and service requirement without the need for printing large A1 size drawings. We are able to quote for more projects using the MeasureSquare system. It is very easy to use and understand with the help of the manual and online demonstrations from the support team. “We would recommend MeasureSquare to any in the flooring trade.” “We don’t expect you to take our word for it, we want you to see for yourself how easy it really is,” said Laser Measure’s Nigel Welsh. “Download the latest iPad edition from the App Store or contact Laser Measure for the latest trail Windows edition.”
Advantages of Intafloors Ply Underlay:
PLY UNDERLAY
Dimensionally stable No tendency to distort No defects or knots on surface Well established in USA and UK
Tested to meet Australian and New Zealand standards.
Staples bed below the ply surface, therefore feathering is reduced Exterior grade bonding adhesive used in construction Nail pattern to facilitate quick and easy installation
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AUS / NZ Distributors
Less sanding / preparation time Larger sheet size (1220x1220mm) reduces installation time Remains smooth and undamaged when stapled
NSW
QLD
TAS
Intafloors Trade Depot Sydney: 02 8678 5479
McDonalds Flooring Accessories Gold Coast: 07 5564 9999
VIC
NEW ZEALAND
SA
Gibbon Group Newcastle: 02 4951 1002
Nuplex Construction Products NZ Free Phone: 0508 882 288
Gibbon Group Brisbane: 07 3881 1777
Seal and Sons Adelaide: 08 8346 9833
Total Flooring North Hobart: 03 6234 9855 FIS Distributors Knoxfield: 03 9764 2400 Dandenong: 03 9702 7822 Geelong: 03 5521 6670 Preston: 03 9416 7878
www.intafloors.com.au
WA
Kevmor Wholesale Trade Supplies Perth: 08 9277 7177
AlternativeFlooring
FLOORChef kicking goals The new Adelaide Oval has got the city buzzing and FLOORChef has been right in the thick of it with its resin floors in three prestigious areas and over 700m2 of the $500 million re-development. The project architects decided against conservative options such as tiles, carpet and polished concrete to handle the testing mix of heavy traffic and corporate catering. Instead, a custom resin floor was developed to turn their stylish two-tone design concept into reality. The first section completed was the Field Club, which holds game-day functions giving patrons a unique glimpse into the changerooms of both AFL teams. This was followed by the Audi Stadium Club in the new Eastern Stand – a facility representing the very best in corporate hospitality. The same design
was once again used in the luxurious John Platten Bar and a dining space simply called The Restaurant; however, different colours were used each time to match the decor. “In addition to the decorative finish, we were also able to offer a clear anti-slip topcoat (Duraglaze) around all service areas to improve safety, as well as a semi-gloss polish to lighten the maintenance load,” said FLOORChef’s Wayde Gniel. “The floors look superb, flowing seamlessly throughout the rooms and along the arching corridors of this impressive stadium: quite remarkable considering the technical demands of the project and the challenges that popped up during application. “Although it’s impossible to tell now, extensive patching was required beforehand and large
sections of concrete levelled before the two-pack, solventless epoxy floor was applied, including ramping in doorways and in-filling of data boxes. Not only that, our FLOORChefs had to contend with a mass of trades and some unexpected damage along the way to finish within the extremely tight schedule. “Our efforts certainly weren’t lost on the primary coating contractor,
Robin Gage of Wetspot Consolidated, who praised FLOORChef’s ‘professional approach, product knowledge, friendly staff, good work ethic, [and] great finished product’.”
Floors for all areas of excellence Sika recently collaborated on the retail flooring project for the refurbished DFO Homebush Homemaker Hub in Sydney. Firmstone Flooring Specialists were subcontracted by Mainbrace for
42 Flooring June/July 2014
their creative and technical expertise to meet the architect’s artist impression of a floor covered with swirling silvery clouds and starry galaxies. Working in collaboration with their preferred supplier, Sika,
colours of silver and grey metallic dust or shards were selected and mixed into Sika’s specialised product of selflevelling epoxy. The DFO project involved a floor of approximately 1200m2. Working in areas of 300m2, the floor was vacuum ground and then primed with Sikafloor 160. This, together with the decorative shards and dust, was then put down as a self-leveller at 3–4mm in thickness. As the epoxy flowed and the 40-minute curing process began, the shards settled and created the desired metallic cloud patterns with a translucent 3D effect. Having successfully worked together on many large projects before, Sika and Firmstone’s extensive experience and partnership
as supplier and applicator has, yet again, created a showcase result with the largest commercial/retail floor of this nature. Sikafloor 160 is a two part, solvent free, epoxy primer and binder, modular Sikafloor system that has been used in projects such as the MCG and SCG flooring, as well as the Perth Arena. Founded in 1976, Sika Australia is a specialty chemical supplier for the building and construction industry. The product line includes high-quality concrete admixtures, specialty mortars, sealants and adhesives, damping and reinforcing materials, structural strengthening systems and industrial flooring, as well as roofing and waterproofing systems.
PICFloors
Preparation, Installation & Care
Aussie clean and capture system Cure and seal concrete in one application DuraCore has announced the launch of Cure & Seal – the newest product in its continually expanding range. Cure & Seal has been specifically designed for car parks and exterior concrete. It is a proprietary water based formulation with multiple purposes and can be applied to new or existing concrete. It is an excellent cure regime, dust proofer, surface hardener and gives stain resistance from oils. Cure & Seal is also compatible with line marking. DuraCore’s Director, Andrew McLeay said: “It’s great to finally be able to offer the market place a product specifically designed to cure and seal car parks in one application at an affordable cost.” According to Andrew, the benefits in using Cure & Seal over topical curing membranes are: • resists oil staining; • reduced tyre squeal; • industry’s best cure and seal for newly placed concrete; • environmentally friendly, zer•VOCs; • reduces the potential for dusting; • reduces efflorescence; • invisible finish; • easy t•maintain • lasting stain protection; • easy to apply; The products are now distributed widely across Australia.
FreeFit
™
Intaglio Sculpture Plank.
Call David Coggins 0419 798 726
44 Flooring June/July 2014
In a major new move, Australian Pump has introduced a new clean and capture steam cleaner system designed for local government, contractors and machinery operators. Designed to enable operators to comply with EPA regulations, the Hydro-Loop Junior consists of a 3,500 psi steam cleaner, trailer mounted with its own used water recovery and recycling system. Australian Pump introduced the Hydro-Loop to Australia around five years ago with huge success. Contractors and local government bodies used the system because it provides a genuine clean and capture system with real capability. Versions are available with either petrol or diesel drive engines. They come on heavy duty trailers or can be skid mounted for installation on to a truck or utility vehicle. “The great advantage of the HydroLoop is that it carries its own water supply,” said Aussie Pumps’ Hamish Lorenz. “That means the operator and machine can be completely selfsufficient during the cleaning function.” Another benefit is that even under the current new safety standards for high pressure water blasting equipment, the Junior can be operated by one person. The Hydrotek steam cleaner delivers a whopping 17 lpm flow and maximum temperature of up to 130 degrees C. It’s powered by a big Vanguard twin cylinder electric start 18hp engine and features a heavy duty triplex pump at the heart of the high pressure system. The machine, complete with 750 litre impact resistant poly water tank, is mounted on a single axle trailer, designed to be registrable in all states in Australia.
When push comes to shove Be it a tough adhesive, epoxy coating, paint, coating or membrane, the DSM250 proudly shows its true colours. For flooring contractors, The Towers Rooftop project was a challenge until the DSM250 coupled with PCD (polycrystalline diamonds) hit the floor. A thick failed waterproofing membrane needed to be removed, with something fast and aggressive. The contractors used the Schwamborn DSM 250 with the Polycrystalline Diamond (PCD) to ensure this could be effectively achieved. In surface preparation PCDs play an important role to break up thick, tough compounds on a surface initially. Once the bulk is removed you tidy up where required. Waterproof membrane was applied around the roof support pylons, so edge grinding was made easy with a simple adjustment on the shroud of the DSM250 grinder. Being a construction site in the heart of the city, dust control was essential. All Preparation Equipment recommend the Starmix ISP1435 vacuum and separator system for dust control. With tough old glues under carpet, vinyl and cork floorcoverings, the PCD Diamonds are the answer to any tough removal floor project whether on a hand held angle grinder or a single or three phase concrete grinder.
PICFloors
Preparation, Installation & Care
Rebirth of an icon The iconic Backbencher pub, which is right across the road from New Zealand’s parliament buildings, had two fires in 2012– one in the kitchen and a second as a result of some re-construction works. The Backbencher is a local and national political pub institution that hosts its own TV show on Prime TV. When it came time to do the renovations, the pub’s proprietors wanted their new floor to be a hardwearing wooden floor that would fit with the modernised theme in their historic building.
Wellington company, James Henry, was commissioned to supply and lay a wooden floor that would look as though it had been there since the building was first built in 1870. “The brief was to: ‘… find us a wooden floor, more economic than recycled Matai, hardwearing, something that will give the impression that it might have been the original floor in the building, and still look sharp….’,” explained James Henry’s Chris Northmore. “We had in stock recycled Australian hardwood flooring (karri (Eucalyptus diversicolor from South Western Australia)) that had been recovered from a factory building in Lower Hutt, about 12kms from Wellington’s parliament buildings. We made sample panels for approval by our client’s interior designer, who approved a black stain followed by polyurethane. “Our crew started at 4pm on Friday 21 Dec 2012, when others on site were packing up for the holidays. We had Christmas Day off and, by working on every other day, we completed by 18 Jan 2013. Our specialist
sanding and coating crew followed and completed the finishing by 25 Jan 2013,” explained Chris. “Once the job commenced, the joists were removed and a concrete slab was poured as part of the re-strengthening of the building. This was sealed with Selleys Liquid Nails VBS vapour barrier, and tested to confirm that an adequate seal had been achieved. “We then laid 50mm x 50mm batons on packers over the concrete. The recycled wooden floor boards were fitted to the batons using Selleys Liquid Nails Direct Stick flooring adhesive and secret nailing. The floor
was sanded and coated with two coats of stain followed by two coats of moisture-cured polyurethane.” James Henry produces and installs recycled and new wooden floors and solid timber fittings. Based in the Wellington region, the company installs floors and deliver flooring timber all over New Zealand, specialising in taking recycled timber, otherwise destined for the tip or used for firewood, and manufacturing it into a top quality recycled product. This includes matching recycled timber with original floors to ensure consistency throughout house extensions.
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46 Flooring June/July 2014
We know how.
Business
How to be sure your business is making money... and keep some for yourself! Sue Hirst, Director, CFO On-Call A simple way to ensure business profitability and healthy cash flow is to focus on what drives both. • What drives revenue needs to be understood. • How saleable is the product or service and what is the market? • What marketing is working and how much is it costing to acquire a customer? • Is it profitable revenue? • How does the true cost of delivering the product or service compare with the price? • Are customers returning and if not why not? One of the biggest missed opportunities we see in business reports is lumping all revenue into one account and not breaking it down into categories. Breaking down, not only the revenue but the costs associated with each revenue source, enables you to see clearly where you are making and losing money. Pricing of products and services is vital to profit. To ensure profit it’s vital to know the true cost of the product or service and keep an eye on it, to avoid ‘margin squeeze’, ie allowing costs to rise without increasing prices and absorbing extra cost. Market forces have an impact on pricing but it’s not viable to continually absorb cost increases without price increases. It’s not always necessary to increase everything. Example: One client recently told us they hadn’t increased prices for years. We did some analysis to find out what were their best selling products. On each of these we agreed to a small increase with no resistance from customers. A small regular price increase is much easier to achieve that irregular big ones. Most customers expect a CPI increase and if it’s written into contracts, it’s much easier to achieve.
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Costing of products and services is vital knowledge to work out gross profit, which is the difference between revenue and costs and is an important benchmark. Cost of products may include the product, importing, freight, packaging, labour, warehouse, raw materials etc. Cost of jobs may include: labour, materials, out of pocket expenses etc. If gross profit is below expectations it may be necessary to assess how products and services are costed and acquired. Example: We had one client in a wholesale business whose packaging was a large portion of costs. When we questioned their ability to negotiate a better price with the supplier, they said it wasn’t possible. We did some shopping around and found a supplier who offered a 10% reduction. The regular supplier soon agreed to a similar reduction. Labour is another example of cost management on jobs. It’s often the case where chargeable labour spends time doing non chargeable work such as admin. If you take the number of people and calculate the total hours spent on admin multiplied by their hourly charge out rate, it’s often the case that the cost of employing someone else to do it is less than the missed income. Overheads can get out of hand where there is no budgetary control. Owners don’t always have time to keep an eye on what everyone is spending, or shop around for the best deal. A budget can be a saver as can giving someone the task of shopping around for better deals on supplies. One overhead that can get out of hand is wages. Often in a growing business, staff are employed to meet demand without proper job descriptions. An organisational chart can be useful for a growing business. Begin by listing all tasks in the business, then list who currently does them. Any overlaps and
gaps should become obvious and job descriptions can be realigned to suit. Debt collection is an area that has blown out recently. Dunn & Bradstreet recently reported that average collection days were 55.6 days. Compare this to your seven day terms to see what impact this is having on cash flow. Start with Terms of Trade so your customers understand the expectation. Invoice as soon as the product/service has been delivered or get a deposit or progress payments. Then follow up smartly. Email follow ups for small amounts and phone calls for large amounts. Keep good records of reasons/excuses for late payment and agree to outstanding amounts being paid off in instalments over a period. Stock and jobs can be a huge drain on cash flow. Think of stock as dollars piled up on the stock room floor and jobs in progress as dollars on the work room floor. It really pays to reduce the time stock sits in store and jobs wait to be finished and invoiced. Good records and planning are vital to management of both. There are some cost effective online systems available that can save thousands of dollars in working capital requirement to fund stock and jobs. . Examples are Unleashed Inventory Software and WorkflowMax Job Management Software, both of which link to Xero Online Accounting Software. Slowing down payment to suppliers is often the last resort where there’s cash flow problems. Often we see suppliers being paid too quickly or worse being overpaid. A close eye on this area can provide much needed cash. Sue Hirst, Co-founder and Director, CFO On-Call http://info.cfooncall.com.au/7k-numbersebook
SurfacesToday
The Best Just Got Better! Tramex, the moisture meter specialists, are proud to announce the release of the new concrete moisture meter
with
Quality, price and safety is just the beginning Included in Floorsafe Australia’s vast range of safety products is its own manufactured and developed product – the Floorsafe Anti-Slip system. Available in DIY packs, this unique anti-slip system makes slippery tiles anti-slip safe even when the tiles become wet. For making steps and stairways safer to walk upon a large range of anodised aluminium, fibreglass, safety tread and rubber stair nosing’s are available to choose from. Full lengths can be purchased or custom cut to required sizes saving the contractor wastage and time. Tactile indicators along with safety stair nosings are required by law to be installed on all new ramps, stairways and pedistration areas. As one of the largest suppliers of tactile indicators, the company has a selected range to choose from including stainless steel and
Classic expansion joint covers
Classic’s recently released Expansion Joint Covers offer a series of products to cover and protect construction joints in floors, enabling a safe path of travel for pedestrians. The two part EJC systems are suitable for vinyl or tiled floor finishes and also for fitting onto pre-finished concrete. Covering gaps of up to 10mm, they are well suited for retrofit applications and are commonly used in retail centres, schools and public buildings.
polyurethane coloured individual tactiles, 300 x 600 silicon rubber tactile pads, 300 x 300 peel and stick tactile pads and 300 x 300 ceramic tactile pavers. In over 28 years the company’s Floorsafe brand name has become well known due to its ability to provide expert advice and quality products at competitive prices. Its Adelaide warehouse carries a large amount of stock in order that service excellence can be maintained at all times. “Our mission is to give the customer what they want and when they want it,” said Managing Director Philip Zagni. “We aim to dispatch all orders the same day so that small item orders are received the very next working day. Customer service is our obligation and that is where we have built up a reputation that our customers can rely upon.”
Pictured in Kit Form
Perform testing to the latest Australian Standard AS18842012. ASTM F2170 & ASTM F2659 as well as ASTM F2420: The complete moisture and humidity testing kit for concrete and wood, incorporating the Tramex instant moisture test and the new Hygro-i in-situ probe working together to provide a new standard in speed & accuracy which can be used again & again... Don’t waste time and money waiting up to 72 hours for a moisture test when the slab is not ready! Check it first with a Tramex CMEXpert II.
For more information contact Tel: 02 9418 1002 Fax: 02 9498 8576 Email: sales@cornell.com.au
www.cornell.com.au
SurfacesToday
New dual pressure washer After much success with the design and development of the powerful DPW-4000 surface cleaner, Makinex has once again demonstrated outstanding innovation in launching a 2500PSI model. Following the footsteps of the DPW-4000 that was launched less than a year ago, Makinex now offers a lighter and more compact pressure washer: the DPW2500. Offering the same functionality and versatility as the original model, the DPW-2500 combines a rotary cleaner and wand in the one machine with the ease of swapping between them at the turn of a handle.
While the DPW-2500 is lighter, more compact and easy to manoeuvre, it does not compromise on power. The adjustable pressure ranges from 1000-2500PSI making it suitable for a wide range of applications including car parks, driveways, pavements and even machinery. Rory Kennard, Makinex Director stated: “We are always looking at developing products that allow tradespeople and contractors to do their job faster, safer and easier. Makinex is a quick and nimble company that will implement methods of continuous improvement, and better yet, take it to market quickly to meet ever-changing customer needs”.
Global invention by Aussie tiler A Port Pirie tiler’s lifelong love of tiling has led to a world first innovation, which is changing the way his DIY and trade customers tile. Sal Capurso, who has Beaumont Tiles franchises in Port Pirie and Whyalla, tiled his first bathroom aged 15 and has seen countless home renovations go wrong. The most common mistake is uneven tiling – not just an eyesore but a trip hazard. Wanting to help his customers get the perfect result, he drew on four decades of know how to invent the Simple Accurate Levelling System (SALS). SALS is a simple plastic clamp and washer device that tightens two tiles together, without any tile movement or scratching to the tiles. Tiles
50 Flooring June/July 2014
can be laid dead flat with no unsightly lips or trip hazards. Sal has also developed a special formulated adhesive working in tandem with a Sydney chemist. “If your floors or walls aren’t completely flat it’s hard to get the flat finish you want – but it’s not just an aesthetic issue, it’s a safety issue. “With SALS you can lay tiles so accurately they look like sheets of glass. And, for tradies, the system makes laying the tile less strenuous on the body,” he said. So successful is Sal’s system it caught the attention of one of the world's leading suppliers of highquality specialist building materials, Ardex, which is manufacturing and distributing it internationally.
The only Australian made hardboard that continues to outperform all imported hardboard
✔ 5.5mm thick ✔ Supports Australian jobs ✔ Preferred by installers ✔ Easy to install ✔ Tough, durable and stable ✔ Flexible and resistant to cracking or fracturing
✔ Highly resistant to indentations Available at your local Roberts Distributor AFS - VIC NSW ACT 1, 25-27 Olive Grove Keysborough, VIC 3173 Tel 03 9797 1820 or 02 9756 4681 afscustomerservice@qep.com
AUSSIE FLOORCOVERINGS 1/10 Macadam Place, Balcatta, WA 6021 Tel 08 9344 8448 ausmats@isnet.net.au
GLENDENE 10 Coglin Street, Brompton, SA 5007 Tel 08 8346 0900 glendene@bigpond.net.au
FLOORS OF TASMANIA 33 Montagu Street, Invermay, TAS 7284 Tel 03 6334 3455 floorsoftasmania@bigpond.com.au
GEORGE LOW 114-118 Woodlands Drive, Braeside, VIC 3195 Tel 03 9587 4222 sales@georgelow.com.au
PR FLOORS 19-23 Computer Road, Yatala, QLD 4207 Tel 07 3807 4422 sales@prfloors.com
SurfacesToday
Reduce or eliminate fatigue According to Identity Matters, anti-fatigue matting can increase productivity, reduce absenteeism and help to create a better working environment where staff spend a lot of their working day on their feet. Benefits include protecting the workforce from work related injuries; addressing issues concerning foot, leg and back fatigue; helping prevent circulation and postural injuries; creating a better working environment and thus increasing productivity; reducing slipping potential and preventing personal injury should an individual fall.
Use of anti-fatigue matting also demonstrates that management cares about the welfare of their employees by being proactive in developing a safe, healthy and productive environment for everyone.
Sales Representative • International Manufacturer • Attractive Salary package including company car, plus incentives Victoria Carpets is a well-established international manufacturer, recognised for quality and innovative design. The Company’s Australian division operates manufacturing plants at Dandenong and Bendigo in Victoria, producing quality tufted carpets for the residential and commercial markets. As part of the Queensland team you will be responsible for achievement of sales targets. An essential attribute is the ability to develop a strong rapport with our long-standing and valued retail customer base. The role will appeal if you are a proactive, results driven person, capable of achieving sales targets and developing sound business relationships. Proven track record in negotiations along with analytical and presentation skills will be important traits. Plus a commitment to high service levels. A most attractive salary package including company vehicle and bonus is designed to attract candidates of the highest calibre. Confidential applications address to: The Australasian Sales Manager, PO Box 388, Dandenong, VIC 3175 E-mail: info@victoria-carpet.com.au
52 Flooring June/July 2014
Colour design options for hardwood floors The new ComfyTex range by Signature Floors is a textile backed vinyl flooring. It combines the true-to-life looks of timber and stone and tile with the practical benefits and cost of a vinyl. The newest fashion colours and modern designs have been incorporated to update the range, and have been introduced alongside classic favourites to encompass a doubled range of 51 pattern and colour references. These references are further nestled amongst four design groups to suit nearly all home décor, making it an easy choice for decorators. Extremely comfortable, ComfyTex has a 2.60mm thickness and textile backing, which delivers soft and cushioned comfort underfoot. In addition its thermal properties mean that
it stays warm in winter and cool in summer. Manufactured by a stateof-the-art facility in Europe, ComfyTex holds a 15 year residential warranty and an R9 slip rating making it suitable for all areas of the house. It also features Signature’s exclusive Superguard surface protection for exceptional performance and to give customers peace of mind that their new floor will continue to look its best. ComfyTex can be installed on top of most surfaces and tolerates irregularities of up to 2mm in depth and 3mm in width due to the way the textile backing is able to adapt to the subfloor. In most instances it can be loose laid without adhesive over any sized floor requiring little preparation making overall installation faster, cheaper and much easier.
Colour design options for hardwood floors Loba has taken a trend from Scandinavia and perfected it with a new product: the reactive stain Lobasol ActiveColor offers design options for parquet and hardwood floors with attractive contrasts and colour effects. As a pre-treatment for the impregnating oils Lobasol HS 2K ImpactOil and ImpactOilColor, the stain enhances the wood’s natural grain and makes it possible to create vibrant plays of colour, even with 3D effects. To help users compare the many attractive colour combinations and choose the one best suited for their purposes, Loba offers a sample set as well as trial sizes. The new stain, available in the colours grey and brown, brings out the wood’s natural grain. The stain is suitable for tannin-rich woods, like oak. It can be used for creating natural colour effects, such as the look of smoked wood. As a result, lively surface designs
are produced: even 3D effects or floors with a rustic, antique look (vintage). Lobasol ActiveColor is available in the colours brown and grey – both of which accentuate the wood’s structure in different and attractive ways. It can be applied with a spray device and the Lobatool Wischwiesel, with a TrimPad or with a roller. The waterborne stain is completely odour-free, can be diluted with water and dries overnight. A video on LOBA’s website shows how easy it is to use.
No more clogged vacuum filters Dust containment is a pivotal on-site requirement, not only for worksite productivity and cleanliness, but also for the reduction of airborne dust, which contains silica particles. The WORX+ line of dust containment solutions ensures that production rates are not hampered by ineffective vacuum systems, dust containment becomes easy, your workplace is tidy, and all affected personnel are protected. WORX+ is the exclusive Australian distributor of the Pulse Bac industrial automatic self-cleaning
vacuum technology. The Pulse Bac automatically flushes the filters clear while you work, using only ambient air and vacuum. This technology stops the filters from facing with dust or debris and clogging during operation. Unparalleled peak performance is maintained without blowers, shakers, compressors or buttons to push. No clogging and no need for stopping maximises operator’s productivity and grinding performance while simultaneously decreasing potentially hazardous airborne dust.
BUSINESS FOR SALE CAPITOL CARPETS PTY LTD BANKSMEADOW NSW 2019
Looking for a change? Sydney’s largest independent carpet Retailer on the North shore looking for sales staff – full time. Experience in flooring essential. Good rates of pay and commission, immediate start.
Email resume to davidh@carpetright.com.au
Family business established 22 years. Comes with excellent reputation for quality and service. Long Lease available. All set up to take advantage of billion dollar unit developments in nearby suburbs and CBD. Excellent turnover and profits. Great potential for further growth.Situated close to Sydney’s Eastern and Central suburbs. Owner retiring. Please contact office Ph: 02 9666 6088 Email: capitolcarpet@capitolcarpets.com.au
Flooring June/July 2014 53
Advertisers Index
Exhibitioncalendar
2014 Exhibitions
JULY 2014 10-13
Furnitex and Decoration + Design 2014 Melbourne, Australia http://informaexhibitions.com.au/ 27-31
LVM Las Vegas Market 2014 Furniture Show & Decorative Accessories Market Summer Edition Las Vegas, USA www.lasvegasmarket.com
AUGUST 2014 6-9 AWISA Brisbane, Australia www.awisa.com 20-23 IWF 2014 Atlanta, GA, USA www.iwfatlanta.com 22-24
Wood Tech India 2014 Exhibition on Wood & Woodworking Industry including flooring and Parquetry Chennai, INDIA www.woodtechindia.in
SEPTEMBER 2014 1-3
100% Design Singapore 2014 Contemporary interior design exhibition Singapore www.100percentdesign.com.sg/
7-9
NYICS 2014 New York International Carpet Show New York, United States www.nyics.com 10-13 FMC + FMC premium China 2014 Shanghai, China www.fmcchina.com.cn 24-26
Heimtextile Russia 2014 International Trade Fair for Hometextiles, Floorcoverings and Interior Furnishings Moscow, Russian Federation http://heimtextil-russia. ru.messefrankfurt.com/moscow/en
OCTOBER 2014 5-7
Furniture and Interiors Fair 2014 Furnishing accessories, lighting, interior design, soft furnishings and flooring, outdoor living Dublin, Ireland www.irishfurniturefair.com/ 9-12
Index Wall & Floor 2014 International trade fair on wall & floorcoverings & claddings Mumbai, India http://ubmindexfairs.com/
*** For more information on the fairs or to confirm dates, please check the individual websites.
Advantage Flooring Distributors 28 Agnews Water Putty 50 Airstep Australia 22 & 23 Archquip 8 Autex Industries 27 & 29 BASF 45 Capitol Carpets 53 Carpet Court 13 Carpet Right 53 Choices Flooring 15, 17, 19 & 21 Classic Architectural Products 47 Cornell Group 49 Dunlop Flooring 33 DuraCore 12 Embelton & Co 5 Floorsafe International 40 GMK Logistics 10 GTP Australasia 14, 26 & 44 Intafloors 41 Kennards 2 & Back Cover Laser Measure 31 Leister 46 Proline Floors 9 Protect Crete Australia 35 QEP 43 & 51 RFMS Australasia 37 & 39 Shaw Contract Group Front Cover & 25 Supertuft 7 Underlay King 11 Victoria Carpets 52
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