Superior
products with a greater emphasis on style and substance, supported by modern
installation techniques, will spell increased profit in the commercial flooring
sector, even during challenging economic times. Why? Because top-notch products
mean greater value for the client.
In past
columns, I have offered tips on how to build your business in a down economy. I
have made it a point to include specific actions to accomplish this. What is
equally important is avoiding blunders that can make tough times even tougher.
So instead of tips on what to do, let’s focus on what not to do.
Country parents teach their children early on that you don’t have to
touch a stove to find out if it’s hot. Do so,
and you’ll get burned. It’s the same with business. Unfortunately, my
experience has taught me that most floor covering retailers feel they must
“touch the stove.”
Generational
traits are highly generalized, of course. But the profiles defined are accurate
enough to give us some important clues and selling “hot points” for the
customers walking into your store. So let’s have some fun with our fictional
customers and their “What if” scenarios.
One of the
most important considerations is scheduling. Before submitting your bid, review
the latest schedule performance expectation from the construction manager. Is
it possible with your other work?
Families have issues,
conflicts and baggage—and so do businesses. When you mix the two there are
bound to be problems. When they do arise, it’s important to identify the source
of the conflict while understanding the personalities involved.
No matter how well-known you are
as a retailer, no matter how successful your operation, the commercial sector
is a whole new ball game. Even those retailers who are pursuing a modest agenda
of Main Street commercial work have to re-establish themselves and build a
reputation.
Look
for industry specific accounting software that is tailored to your needs. You
want flooring software that records everything in your computer. No more searching
for paper documents.
Having the right attitude means doing the right thing for the customer,
not the business. Customer service training at some of the most
sophisticated companies in America consists of how service personnel
should act toward customers in accordance with company policy.
Your
foray into the commercial side of flooring should start with a simple
evaluation of your core business. Ask: What are we particularly good at? Or to
put it another way: What are we best known for in our market area?
Some things have stayed the same over the years, but other facets of
the business have changed drastically, perhaps most notably technology.
Another welcome improvement involves the quality of the service offered
by the major mills as well as the sophistication of local sales reps.
I urge retailers to
update their showrooms on a continuing basis. My advice is to divide the space
into four areas, rotating the remodeling every six months. In that way, you can have an entire new look
every two years.
The search for new money-making ideas has led a growing number of
flooring retailers to take up window shopping. Many who have expanded
their inventory to include a display of window fashions – including
blinds, shutters and shades – say the strategy offers a few advantages.
Consumer surveys and focus groups consistently tell us that customers
don’t buy from your competition because of lower prices or better
selection. They buy because they like the other salesperson better! One
way to solve the pricing problem is to train your salespeople. The
important part of sales education is not related to techniques such as
qualifying or closing. Selling is the art of being liked.
While pricing has long been a hot button issue
in the industry, there is no question that the high-end is where profits reside.
At a time when downward pricing pressures are coming from big box retailers and
overseas suppliers, manufacturers say the opportunities in the high-end have
never been stronger.
If consumers in your market have a mental image that
you are unable to meet their desires – even though their perception may be 180
degrees distorted from reality—they will shop elsewhere. Consequently,
you need to shape both the reality and the customer’s perception of it.
Many retailers who are considering a B2B system are concerned by
several aspects of the technology. The software vendors, however, are confident
that these concerns will be put to rest once retailers become more fully
acquainted with the systems now available.
