Hi Ho, Hi Ho, It’s Back to Work We Go!

Margo Rodgers Locust Publisher, Fabulous Floors Magazine and Premier Flooring Retailer; Flooring retailer in Northwestern North Carolina

Here are some tips that have helped re-build our residential business. With today’s new shopper and the many Covid-19 restrictions, we have discovered incorporating some of these ideas have been very profitable.

Five years ago, I went back into retail after 30 years of being a Retailer in upstate NY for 20 years. As much as things have changed, much has stayed the same. I had the privilege of beginning my career in the flooring industry under the tutelage of industry icon the late Sonna Calandrino and her sister Lisbeth in the early 1980s.

Three decades later, my husband and I and our dear friend restarted in flooring retail with a small 600 sq. ft. showroom in a sleepy little town in the foothills of the Great Smokey Mountains of NC. We are a minority-owned business (Cherokee Indian), with a rapidly growing Main Street and Commercial contract business.

We have had to overcome challenges, figure out who we were in the community, and what products our customers look for. We learned that carrying products complimentary to flooring was a big part of our business. Just when we thought we had it all figured out… The COVID-19 Pandemic hit!

While the commercial business slowed down due to stay-at-home orders and restrictions, it eventually kept moving steadily forward, adhering to schedules. On the residential side, we had to re-find our niche and re-invent our business to reflect moving forward profitably during the COVID-19 crisis. Here are some tips that have helped re-build our residential business. With today’s new shopper and the many Covid-19 restrictions, we have discovered incorporating some of these ideas have been very profitable.

Locust Trading Company Website

Creating Profit Centers

We’ve all heard the terms “valued-added,” “back-end,” and “after-sales” selling. What do they mean, and how does a business provide something valuable for the customer?

The greatest cost of any transaction is in the first sale. You will need additional sales from the same customer to be profitable. Let’s say the cost of each customer acquisition is $100.00. This means you need to add $100.00 to the sale for every customer. If you discount the sale, there’s a good possibility you won’t make very much money. To keep the customer coming back, you must have products they will want or need to purchase after the sale.

Cleaning products.

Every product needs a different kind of cleaner, so why not find one that you can private label? In addition to cleaners, some flooring products need polishes and sealers. Make sure you have them all in stock for your customers.

Extended warranties.

Don’t think that flooring warranties have no value! I don’t know a product on the market, particularly electronics, that doesn’t have an extended warranty, no matter how cheap the product may be. It becomes a problem when the salesperson doesn’t explain what it means.

Most stores have a warranty on the installation, with exclusions. Consider offering a paid warranty to pick up the exclusions? If you have a two-year installation, offer a lifetime one. Installation is the most important part of your business, so provide as much coverage as possible.

Never underestimate the power of your website.

Especially during the pandemic, it has created a whole new way of the customer connecting with us. I never thought people would be buying flooring products online, sight unseen, but it is happening time and time again. Make sure your website is up to date on technology. (A topic for another article onto itself!)

DIY Products.

Why should the big box stores and online retailers get all these customers??? Also, many people don’t want anyone from the outside to come into their homes. Our industry has many do-it-yourself products for consumers: Smart Squares Carpet, from Engineered floors; Déjà New with Attraxion with magnetic technology, from Metroflor; and anti-slip solutions for aging in place, or items for our beloved pets including ramps and non-slip products, from HandiProducts®.

Professional carpet cleaning.

All carpet must be professionally cleaned. Are you doing the cleaning or allowing someone you don’t know into your customer’s house? Eventually, the customer will need new carpet and will ask the cleaner where to get it. If they work with someone else, you’re out of luck. Why not sell a discounted cleaning package?

Commercial jobs.

When it comes to the commercial business, beware! Start small. Chances are you won’t be paid as quickly as you are used to, so cash flow may be a problem. Look for jobs that make you money. Keep margins up, not volume. Consider providing the flooring, not installation, and doing the final building cleaning. This can be very profitable.

Construction Products.

How about supplying other products needed for a remodel project? Floor leveling materials, floor preparation, repair items, subfloors, underlayments, moisture proofing products, adhesives, mortar, grout, moldings, trims, etc. Keep your customers out of the big box stores!

Profitable products.

Can you provide window treatments, shutters, painting, or construction? If you have the skills and the personnel, they are all a good fit. Shower doors go with bathrooms; kitchen cabinets are a natural with kitchen floors.

Selling vacuum cleaners.

Vacuum cleaners go hand in hand with flooring products. Today, vacuums perform well on both hard surfaces and carpet, including thick carpet, which has been causing problems for years for the consumer.

The Powers of a Buying Group

Buying groups are designed to provide independent retailers with a menu of professional tools to grow a successful floor covering business. Every program and benefit helps members increase revenue, decrease the cost of goods, and streamline operating costs. You will find networking opportunities with fellow retailers sharing best practices, website and social media presence, POP kits, advertising options, and more.

Don’t overlook this very important certification:

Minority or Women-Owned Businesses. If you qualify, apply! It can be advantageous and very lucrative. Bottom line: It’s about to be a new year! 2020 certainly has had its share of challenges, and 2021 will hopefully provide us with fresh opportunities. Start it off with a plan for growing your business while keeping your customer acquisition costs at a minimum. ❚